According to Liechtenstein law, there can be two kinds of foundations: private law and public law foundations.
A foundation must be understood as a legal entity embodying an endowment fund. The endowment made for a given purpose becomes an independent legal person with its own rights and obligations.
Family Foundatoins are vesatile instruments that can be used:
- For separation of assets (to increase anonymity)
- For protection of the foundation`s assets in general
- For asset transmission and management covering of several generations
- For protection of separate family members
- For protection against claims of creditors (segregation)
- For tax planning
Family foundations may be used for additional purposes, such as charity, to take care of a sick relative, or to receive assets in special terms.
- Family foundations are considered as legal persons by the EU savings tax directive, they are not affected by the reporting requirements or withholding principles.
- Family foundations are from the founder and/or first beneficiary.
- Liechtenstein foundations normally have bank accounts in civil law countries, such as Liechtenstein, Switzerland, Luxembourg or Austria. These countries have similar legal provisions when judging infringements of matrimonial or forced heirship rights, or considering a foundation as a sham because of too many rights of intervention reserved by the founder.
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