How to set up a family foundation? A step-by-step guide

Do you want to protect your company from division?

Organize succession?

Keep your assets in the family for generations?

A family foundation is one of the most effective wealth planning tools in Poland today. Below, I show you how to set one up—simply, concisely, and without legal jargon.

What is a family foundation?

It is a legal entity that:

• accumulates assets,

• manages them,

• pays benefits to designated beneficiaries (e.g., children, spouse),

• operates in accordance with the rules set out in its statutes.

It operates on the basis of the Family Foundation Act of January 26, 2023.

How to set up a family foundation in 10 easy steps?

1. Check if this solution is right for you

A foundation can only be established by a natural person with full legal capacity.

This solution is particularly suitable if:

• you run a business and are thinking about succession,

• you have shares/companies and want to reorganize the structure,

• you want to avoid inheritance conflicts.

Would you like to analyze your situation and find out if a family foundation is right for your succession plans? - make an appointment for a consultation with Legal Horizons.

2. Choose a name and registered office

The name must include the following suffix:

“Family Foundation” or the abbreviation “F.R.”

3. Determine the beneficiaries

The beneficiary may be:

• a natural person (e.g., children),

• the founder,

• a public benefit organization.

You decide:

• who receives the benefits,

• in what amount,

• and under what conditions.

4. Prepare the statute (the most important document)

The statute is the “constitution” of the foundation.

In it, you specify, among other things:

• the purpose of the foundation,

• the rules for payments,

• the governing bodies of the foundation,

• the value of the founding fund,

• the rules for amending the statute,

• what will happen to the assets after dissolution.

The statutes must be in the form of a notarial deed.

5. Appoint the foundation's governing bodies

A family foundation has:

• a management board (mandatory),

• a beneficiaries' meeting,

• a supervisory board (mandatory if there are more than 25 beneficiaries).

6. Prepare an inventory of assets

You must indicate:

• what assets you are contributing,

• their value,

• who is contributing them.

7. Contribute the initial fund

The minimum value of the fund is PLN 100,000.

This can be cash, shares, real estate, or other assets.

8. Sign the founding act at a notary public

A foundation can be established:

• in the founding act (during your lifetime),

• or in a will.

From that moment on, it operates as a “foundation in organization.”

9. Submit an application to the family foundation register

The register is kept by the District Court in Piotrków Trybunalski.

The court fee for registering a foundation is PLN 500.

The foundation only acquires legal personality after it has been entered in the register.

10. Make sure you meet the 6-month deadline

You have 6 months to register the foundation.

Failure to register within this period may result in its dissolution.

Are you considering a family foundation?

Every financial situation is different.

If you want to:

• analyze your structure,

• assess the risks,

• prepare a secure statute,

contact Legal Horizons – we will discuss whether a family foundation is the right solution for you.

Are you planning to set up a family foundation and need support? Write to us!