Beneficiary of a family foundation

Tarcza 6.0. - Mikropożyczka

Beneficiary of a family foundation – who is it?

a) Any natural person who does not have to be of legal age or possess full legal capacity. The beneficiary may not be related to the Founder. In the case of minors and incapacitated individuals, funds or items received from the foundation will be managed by their parents or guardians. However, the Founder may stipulate that certain items assigned to them will not be subject to such management but will be subject to the administration of a designated third party or a court-appointed curator.

b) The Founder can also be a beneficiary. In practice, this solution is usually chosen by individuals who want to withdraw from active business activities while ensuring asset security. Obtaining the status of a beneficiary requires being listed on the beneficiary list maintained by the board.

c) Non-governmental organizations engaged in public benefit activities, primarily foundations and associations.

What benefits are entitled to the beneficiary of a family foundation?

a) The family foundation accumulates assets, manages them in the interest of the beneficiaries, and fulfills benefits for the beneficiaries. The goals of the foundation should be specified in the statute by the Founder.

b) Benefits for the beneficiary have a financial character and include the transfer or provision of specific components to the beneficiary, including money, things, or rights. Therefore, the foundation may pay the beneficiary a specified monthly amount of money or provide them with a property or a car. In the case of individual beneficiaries, the fulfillment of benefits may include covering living or education expenses. It is also permissible to provide loans to beneficiaries. The specific benefits to which the beneficiary is entitled should be specified in the statute.

c) The provision of benefits may be conditional on the fulfillment of a specified condition, such as using maintenance funds until the age of 25 or completing studies or getting married.

d) Beneficiaries are also entitled to receive assets in connection with the dissolution of the family foundation.

Rights of the beneficiary of a family foundation.

a) The beneficiary can participate in the assembly of beneficiaries – this right will be granted only to the beneficiaries indicated in the statute.

b) The beneficiary has the right to request information about the activities of the family foundation personally or through a person authorized by them. This right will include access to foundation documents, including the statute, financial reports, and accounting books, as well as making copies and notes from them, and demanding explanations from the board on specific matters.

c) The rights and obligations of the beneficiary are non-transferable, except for claims.

d) The beneficiary can renounce their status, either in whole or in relation to specific rights. Such a declaration will require a written form with a notarized signature.

Therefore, the status of a beneficiary of a family foundation is associated with numerous privileges. For this reason, a family foundation may be a popular solution for entrepreneurs planning succession.