Foundations – this is the focus of the new WIFU practical guide. In the practical guide, the author Prof. Rainer Kirchdörfer explains, among other things, the purposes for which family business foundations can be used and the tax consequences of using the foundations. There are many reasons why entrepreneurs can set up a foundation. The first thing to mention here is the situation that there is no – or no suitable – offspring for the successor of the company in the business family, be it due to a lack of skills or a lack of inclination. In such a situation, it may be appropriate and sensible to set up a foundation as an “immortal family member” and to transfer shares to it. In other cases, a foundation is used as an immortal, community family vehicle designed to prevent the splitting of shares or to avoid the risk of an individual selling shares, which would permanently damage the remaining family members.
The practical guide is available free of charge in our library.