When entrepreneur families think about institutionalised succession planning, the Liechtenstein foundation quickly comes to mind. In particular, a Liechtenstein foundation can ensure the upcoming generational change in the family business or the long-term protection of family assets. The Liechtenstein foundation acts as a bracket that holds family assets – and in particular companies – together over generations.
This series will show that the Liechtenstein foundation is much more flexible than its Austrian “sister” and that the founding family can also have significantly more influence than in Austria.
The Liechtenstein foundation is much more flexible than the Austrian private foundation and offers a greater extent of influence by the founding family.
To set up a Liechtenstein foundation, the founder dedicates certain assets to the foundation and defines the purpose of the foundation and the beneficiaries. The minimum assets that must be dedicated in any case are CHF 30,000.- After the foundation documents have been drawn up together with qualified lawyers, a trustee authorised in Liechtenstein usually establishes the foundation. From this point onwards, the foundation is established and forms a legally and economically independent special-purpose asset, meaning that the foundation belongs to itself. This is essential for the unique asset protection offered by the foundation.
The Liechtenstein foundation is managed by at least two people, at least one of whom must be a trustee authorised in Liechtenstein. In addition to the foundation board, other – optional – bodies can be set up. In practice, a family advisory board or protector has become established.
The next part of this series will focus on these bodies in particular.
