Family Foundation - a new succession tool in Polish law (May 2023)
The Act on Family Foundations of 26 January 2023 (the "Act") introduces into the Polish legal system a long-awaited mechanism allowing, inter alia, succession of Polish family businesses, i.e. a family foundation. The law comes into force on 22 May 2023. In addition to facilitating succession, the Act enables the accumulation and safeguarding of family assets and the continuity of the business in a situation where the future heirs of the entrepreneur/owner do not wish to or cannot manage it directly or when they have different expectations and interests that are difficult to reconcile.
Below is a summary of the most important issues arising from the Act.