Private foundations
The private foundation in Austrian has proved oneself to serve as a practical mean to ensure stable and sustainable management of family businesses and firm holdings. This vehicle can be designed to serve both private (e.g. family maintenance) and charitable objectives.
Ideally, the settlor relinquishs power to dispose of his wealth. Setting up a private foundation needs to be considered with care. This is precision work. I will explore your underlying motives and intentions before I propose the proper drafting for the founding document and additional by-laws. If you wish to retain, or confer upon beneficiaries, specific rights (e.g. a right to revoke or amend the private foundation or if you want to make sure to control appointment, serving term or policy of its board of directors), I will put you on notice of all the legal traps looming (e.g. the possibility of foundation funds attached by a settler’s creditors, claw-back rules to cover forced heirship claims, enforceability). All these issues need to be considered and balanced with care and due diligence.
Under the specific circumstances of a situation, a foundation or trust governed by foreign law (e.g. a foundation under the law of the Principality of Liechtenstein, common law-trust and the like) may turn out to be more advantageous to solve your needs. I will keep an eye on that and put your attention on the issue when appropriate.
In current times more and more private foundations face original settlors stepping down or passing away. That is why a rising number of cases involving the deprivation of rights of beneficiaries, or board members mired into conflicts of interest, come under judicial surveillance. On the other hand, in some instances board members are charged with unjustified allegations. Even conflicting views between different officials of a foundation can reach the level of a judicial dispute. I will assist in evaluating your legal position and defending it.
If you face a private foundation designed to support family members, I assist in enforcing your interhitance- and family law claims as a spouse/registered partner or kid of the founder.