So far, Polish entrepreneurs have been transferring their assets to foreign foundations. The purpose of the new regulations is to comprehensively strengthen the legal tools for conducting succession processes by adding to the Polish legal system an institution for collecting family property, allowing capital to be retained in the country for many generations and increasing the potential of domestic investments.

The draft act on the family foundation was adopted by the Sejm and the Senate, and on December 15, 2022, it was signed by the President. The act will come into force after three months from the date of its promulgation, which means that the first family foundations can be established in the first half of 2023.

The family foundation will manage the assets based on the assets provided by the founder or other persons, as well as the profits earned, assets acquired in exchange for assets already owned, etc. The basic task will also be to protect the assets owned against loss or decrease in value. This means that, apart from the founder himself, other persons (e.g. family members) and also third parties and legal persons will be able to contribute property to the foundation.

There will be a possibility of conducting business activity by the foundation, to a limited extent, which will allow for the full achievement of the goals that the foundation is intended to serve for generations, i.e. the possibility of selling property owned by the foundation, renting, leasing property, joining and participating in commercial companies, investment funds and other entities both in Poland and abroad, purchasing and selling securities, as well as granting loans to both companies in which the foundation is a partner and beneficiaries.

A family foundation will be jointly and severally liable with the founder for its obligations arising before its establishment (this also applies to the founder’s maintenance obligation). With the reservation, however, that the liability of the family foundation will be limited to the value of the property provided by the founder as at the time of purchase, and according to prices at the time the creditor is satisfied.