A family foundation is a legal entity established to accumulate assets, manage them in the interest of beneficiaries, and provide benefits to those beneficiaries. The founder defines the detailed purpose of the family foundation in its statute. For a family foundation to be established, it typically requires, among other things, making a declaration of establishment of the family foundation (in a founding act or in a will in the form of a notarial deed) and preparing the statute in the form of a notarial deed.
Information Required for Preparing the Statute of a Family Foundation:
- Name of the foundation.
- Registered office.
- Detailed purpose of the family foundation.
- The beneficiary or the method of their designation, and the scope of their entitlements.
- Rules for maintaining the list of beneficiaries.
- Rules, including the detailed procedure, for a beneficiary to waive their entitlements.
- The duration of the family foundation, if specified.
- Value of the founding capital.
- Rules for appointing and dismissing, as well as the rights and obligations of the members of the family foundation's bodies, and the rules for the family foundation's representation by the management board or by other bodies of the family foundation in cases indicated by law.
- The entity authorized to approve the actions of the family foundation's management during its organization phase.
- Indication of at least one beneficiary entitled to participate in the assembly of beneficiaries.
- Rules for amending the statute.
- Designation of the family foundation's assets after its dissolution, including specifying the beneficiary entitled to the assets upon dissolution of the family foundation.
The statute may also define other matters, including rules for cooperation or collaboration among the family foundation's bodies, detailed circumstances for the dissolution of the family foundation, guidelines for investing the family foundation's assets, and may also provide for the creation of local or regional branches.