Private Foundations / Foundation Law»back
In 1993, an Austrian law went into effect allowing the establishment of foundations for private purposes. Such a law offers wealthy people both in Austria and abroad an excellent investment opportunity and is especially suited for giving a clear structure to large family assets.
The growing number of foundations is a sign of how attractive this form of organization has become in practice. In this context, "knowing the ropes" is indispensable. Questions arising here will most likely include: What is the general framework like? What is the founder’s role? What about the founder’s relationship to the foundation and its executive bodies or officers? After all, the management and supervision of a foundation is not the responsibility of the founder but lies in the hands of appointed officers.
Approximately 2,500 private foundations have been established in Austria since the relevant law became effective. Thus, foundations may be a fairly recent phenomenon; nevertheless, there is already a lot of practical experience.
Generally, the following issues are relevant to founders:
- Preventing family assets from being broken up through inheritance
- Preventing inheritance disputes
- Providing security for family members
- Lack of descendants
- Ensuring that a business is continued as a whole according to the wishes of its founder
- Keeping shareholdings together
- Flexible continuation of a business for underage heirs