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What is a foundation?

The term ‘foundation’ is used in civil law in a number of countries in continental Europe. It has become a speciality in Liechtenstein, and the duchy has liberal legislation on foundations (family foundation) in connection with inheritance planning.

A person can use a foundation to transfer his capital or assets for a specific purpose. A board of trustees makes sure that the desires or the purpose of the foundation are observed. At least one person on the board of trustees must be from Liechtenstein, and may be a lawyer or an accountant. 

Foundation in Liechtenstein
The registration documents and the purpose of the foundation are officially registered in a special register in Liechtenstein.

The person wishing to set up a foundation is not registered, thus achieving a high degree of discretion. The same applies where there are funds/assets of a high value in the foundation. 

Inheritance planning
A foundation is normally used in connection with inheritance planning. 

Contact Inwema for more information about foundations.

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