Succession to the maximum extent – will the family foundation also be available in Poland?
The Ministry of Entrepreneurship and Technology (MPiT) has just confirmed that the government is interested in introducing the institution of a family foundation. A green paper appeared in September, which is to represent the start of the official discussions on this.
How is it now?
Provisions making succession easier for sole proprietors (the Act on the succession management board) have been effective since October of last year. The introduction of this regulation was the first step towards making it easier for enterprises to be passed down to heirs.
This is not a comprehensive solution, although it should certainly be appreciated that every entrepreneur can easily take advantage of it – even without the help or with minimal support of a lawyer (simply put: it is enough to make an appropriate entry into the central register of sole proprietors (CEIDG) for a business not to die together with its owner).
It should be remembered that “family firms” operating on a large scale have the form of commercial law companies. If such entrepreneurs want to pass down their business to successors (either within or outside the family), they have a more difficult task – and they will also be the main addressees of the new institution.
Why a family foundation?
A family foundation is a mechanism that is available in many European countries (e.g. Sweden, Denmark, Malta, Austria and Lichtenstein).
The main advantages of foreign family foundations are:
- the protection of the assets gathered against creditors (e.g. personal creditors);
- the protection of assets against their fragmentation (which could take place, for instance as a part of the distribution of the inheritance);
- the ability of beneficiaries to gain benefits from assets in a controlled manner (including, for instance, underage heirs);
- the confidentiality of the data of the beneficiaries and founders (depending on the state in which the foundation is seated);
- the effective and easy management of assets;
- the reasonably flexible specification of the principles of operation of the foundation / disbursements to the beneficiaries.
As Poland does not have appropriate national regulations, Polish entrepreneurs frequently take advantage of foreign solutions. The introduction of a domestic institution of a family foundation (especially since such a solution has historically operated in Poland) is a step in the right direction.
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