The Liechtensteinian Foundation 2.0
Both corporate and private assets are exposed to multiple risks - today more than ever.
Viehbacher’s Cross-Border Expertise in Foundation Formation
The provision of long-lasting protective measures for family assets with a family foundation is a complex, creative challenge and makes combining various professional fields of expertise necessary, e.g. private risk management, law, as well as both national and international fiscal law.
Viehbacher Attorneys at Law Tax Accountants has developed cross-national asset protection concepts to benefit both companies and individuals in Germany, Austria, and Switzerland. Among them are German foundations, Austrian private foundations and foundations in Liechtenstein. The concepts recommended and carried out by Viehbacher Attorneys at Law Tax Accountants conform to the legal and fiscal requirements in the home countries of both the benefactor and beneficiary.
Legal Set-Up and Characteristics of a Liechtensteinian Foundation 2.0
The foundation in Liechtenstein is an independent special purpose fund into which one or more benefactors put existing assets, such as banking investments, real estate or commercial shares. A board of trustees, called ‘Stiftungsrat’ in Liechtenstein, manages the business dealings of the foundation and is supervised by a board of directors. The benefactor is usually a member of the board. One of the characteristics of a Liechtensteinian foundation that sets it apart from German foundations is that it usually serves private interests. Family members or close relatives are often the beneficiaries of one-time aid or regular benefit payments. Foundations can also be set up for philanthropic reasons or simply out of human kindness, but they can also serve the community, i.e. have a charitable purpose.
Supervision of the Foundation - The Foundation Supervisory Authority
Foundations with a charitable purpose are subject to the Liechtensteinian Foundation Supervisory Authority (STIFA). It is legally mandatory for foundations to subject themselves to an annual audit from an independent auditing agency. The use and administration of the foundation capital are examined in order to confirm that it is being used accordingly to the intended purpose of the foundation.
Foundations based upon private interests are not subject to mandatory audits, however they may subject themselves to a voluntary audit by STIFTA or an auditing agency.
Trouble-Free Foundation Organisation and Set-Up
With the individual set-up and organisation of a Liechtensteinian Foundation 2.0, Viehbacher Attorneys at Law Tax Accountants work from the benefactor’s home country in cooperation with international associates in Liechtenstein in order to ensure the best possible foundation strategy.
This type of cooperation makes it easier for us to carry out all measures necessary for formation in a smooth manner. Prerequisites are: a notarised declaration of foundation signed by the benefactors - the deed of foundation - and filing of the notification of foundation with the judiciary office. These documents contain the legally mandatory information about the characteristics of the foundation.
Goals of a Foundation Formation: Protection of Family Members, Safeguarding Assets, and Philanthropy
A Liechtensteinian Foundation 2.0 is suitable in particular for the following purposes:
- long-term safeguarding of the benefactor, his family members and other beneficiaries
- solidarity and goal-oriented consolidation of family assets over and above the life expectancy of the current asset holders
- tax-optimised management of various types of assets, such as bank accounts, properties let to third parties, and corporate shares • protection of family assets from corporate liability risks
- complementary realisation of additional private or charitable purposes
Your Contact Persons at Viehbacher
Because we have offices in Germany, Austria, Switzerland, Italy and Liechtenstein, we are able to ensure that all of our cross-border foundation concepts conform to the legal and fiscal regulations in all of the countries involved, as well as that they are tailored to the individual demands within the client family.
We look forward to meeting with you in person at our offices. Please feel free to contact us by telephone or e-mail.