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Clients who are familiar with civil law prefer forming foundations for asset planning. It is a simple and efficient way to preserve assets and transfer them to heirs. The foundation is a flexible instrument that may serve as the holder of various assets such as investment portfolios, insurance policies, real estate, ships, works of art, or participations.
The minimum capital required for a foundation is CHF 30000.–. The assets contributed to the foundation become the foundation's property. Only the foundation's assets are liable for its debts. Information about the beneficial founder, the foundation's assets, the beneficiaries, and their rights are not available to the public.
The main executive organ of the foundation is the foundation board, which is in charge of managing the foundation and its assets in the best interest of the beneficiaries and according to the client's instructions. The by-laws contain information about the beneficiaries and their rights. During the client's lifetime, the by-laws may be modified at any time, so that adjustments can be made to reflect changing circumstances. The contents of the by-laws are strictly confidential.
The client enjoys extensive discretion in choosing the beneficiaries and determining their benefits. Beneficiaries can be children, partners, friends, relatives, or charitable organisations. The client may also appoint himself as the primary beneficiary. A foundation exists for an indefinite period of time; however, it may be dissolved at the client's request at any time.
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