ABC of Family Foundation – Part IV – assets of the family foundation

We have already been able to learn from the series ‘ABC of Family Foundation’:

  • what are the general assumptions behind the family foundation [read here],
  • What to do to make a family foundation [read here],
  • who the founder is [read here].

Today we will touch on the topic of family foundation assets.

A family foundation is a legal entity established for the purpose of accumulating property, managing it in the interests of beneficiaries and fulfilling benefits to beneficiaries. The objectives of a family foundation are therefore strictly property-oriented and aimed at providing benefits to specific individuals. The family foundation is to be endowed with property in order to fulfil the benefits for the persons who will be entitled to receive them from the family foundation (the beneficiaries).

The first person to equip the family foundation with property is the founder. The founder contributes property to the family foundation to cover the founding fund with a value specified in the articles of association, not less than PLN 100,000.00.

Such property may include, but is not limited to: cash, foreign currency, company shares, real estate.

The founding fund should be contributed by the founder:

  • prior to registration in the register of family foundations – in the case of the establishment of a family foundation in the articles of association
  • within two years of the date on which the family foundation is entered in the register of family foundations -if a family foundation is established in a will.

While a family foundation acts, not only the founder, but also other persons, can contribute to the assets of the family foundation, for example by way of a donation.

Importantly, for personal income tax purposes, the proportion of the value of the property contributed to the family foundation by each founder or by the family foundation is determined. Property contributed to a family foundation either by gift or inheritance by:

  • of the founder or his or her spouse, descendants, ascendants or siblings – shall be deemed to have been contributed by the founder,
  • other persons – shall be deemed to have been contributed by the family foundation.

Where property is contributed to a family foundation by a joint descendant, ascendant or sibling of more than one founder, the property shall be deemed to have been contributed by all such founders in equal shares.

The proportion referred to above shall be determined by the proportion that the sum of the value of the assets contributed to the family foundation attributable to that founder or family foundation bears to the value of the sum of the assets contributed by all the founders and the family foundation. The proportion shall be determined each time property is contributed to the family foundation.

When contributing assets to a family foundation to cover the initial fund, the founder should prepare an inventory of assets in writing. During the life of the family foundation, the inventory of assets will be updated by the board at the end of each financial year. The inventory of assets should list the property or property rights contributed by the founder or persons other than the founder both at the establishment of the family foundation and during its operation. Each property and right should identify the person contributing the property and have the value and type of each property contributed specified according to the condition and prices at the time of the contribution.

The inventory of assets will include information on the current proportions attributable to each funder and the family foundation.


Ewa Lejman

Partner, Attorney at Law, Tax Advisor

Ewa Lejman

Marta Strzecha-Bociąga

Attorney at Law

Marta Strzecha-Bociąga