Family foundation – what changes to the regulations are being considered?

Family foundations have become a key succession planning tool for Polish entrepreneurs, but recent months have raised significant questions about their future. The completed pre-consultations at the Ministry of Development and the first bankruptcy court rulings shed new light on this institution. Should a foundation be solely a succession tool or an active centre for capital building? Entrepreneurs should prepare for the upcoming clarification of current regulations, which could significantly impact the stability and security of assets. 

What will you learn from this article?

What should be the role of a family foundation in the Polish legal system?

A discussion initiated at the Ministry of Development reveals a divide over the fundamental purpose of the foundation. On the one hand, it is viewed as a succession instrument, serving the orderly transfer of assets to subsequent generations, and on the other, as a capital management tool.

The choice between a “passive” model (solving the succession problem) and an “active” model (investing) is crucial for entrepreneurs planning for the long term, 20-30 years. For a foundation to truly protect assets, it must have room for reinvestment and be able to adapt well to market challenges.

Comments on the completed pre-consultations regarding amendments to the Family Foundations Act indicate that the Ministry of Technology and Development does not intend to interfere with the regulations that allow everyone, including smaller businesses, to benefit from the opportunity to establish family foundations. On the other hand, it is difficult to find any specifics in the ministry’s comments.

As we read in the table of comments from the Ministry of Technology and Development: The scope and nature of the changes will be determined by the review. The Ministry of Technology and Development assumes that it will support justified changes that eliminate negative phenomena observed in economic activity.

Learn more about the basic principles of a family foundation, read also: Family foundation – Act adopted

The scope of activities of a family foundation – what raises the most uncertainty?

Currently, the list of permitted activities for family foundations is sometimes perceived as too narrow and potentially tax prone. As a reminder, the list of permitted activities for family foundations is defined in Article 5 of the Family Foundation Act. Importantly, this list is exhaustive and includes, among others:

Meanwhile, entrepreneurs need a clear signal about which activities are safe and want, among other things, a clarification of the condition “unless the property was acquired solely for the purpose of further sale.” 

Lack of precision in this area can lead to tax risks. Therefore, the planned amendment aims to eliminate these uncertainties and streamline the system, which is crucial for the predictability of management decisions. It is also proposed to expand the list of permitted activities, for example, to include trading in virtual currencies. Meanwhile, pre-consultations indicate that proposals for changes in the scope of economic activity remain open for further discussion.

What other areas are covered by pre-consultation?

The reform will not be limited to the issues mentioned above. The Ministry is reviewing the functioning of the register of family foundations (proposing digitization and expediting entries, which currently take almost a year) and its relationship with the Central Register of Beneficial Owners in the context of protecting family privacy. One of the proposals concerns the digitalization of the register of family foundations, and the Ministry of Justice, together with the Ministry of Technology and Development is working to incorporate the register of family foundations into the National Court Register.

The work also covers issues such as auditing and accounting standards, agricultural real estate issues, and inheritance law (legal share). 

When can changes to family foundations come into effect?

The answer is – not soon. Although pre-consultations took place in March 2026, the scale of the proposals submitted (over 350 pages) and the need to maintain system stability suggest that the legislative process must be conducted prudently. On the other hand, according to the Family Foundation Act, a review of the act’s provisions is to be conducted after May 22, 2026. As a reminder, the Family Foundation Act entered into force on May 22, 2023. You can read more here: Family Foundation Act entered into force on May 22, 2023. 

When discussing the possible effective date of the changes, it is also worth noting that in November 2025, the President vetoed an amendment intended to introduce changes to the taxation of family foundations. Given this, it can be expected that the new changes currently under consultation will have a longer vacatio legis than the vetoed ones.

Moreover, the proposals, including those concerning the clarification of Article 5 of the Family Foundation Act (scope of property disposal), require in-depth analysis to ensure that the foundation remains a tool supporting domestic capital and does not become solely a tool for short-term optimization.

The first family foundation has gone bankrupt – an important court decision

The regulations introducing the family foundation solution into the Polish legal system entered into force in May 2023. Meanwhile, on March 3, 2026, the District Court for the Capital City of Warsaw announced the first bankruptcy of a family foundation in Poland (reference number WA1M/GU/78/2025).

This is a precedent that confirms the bankruptcy capacity of foundations. Although the Bankruptcy Law lacks a clear indication that family foundations are subject to this law, this ruling clearly indicates that foundations must also maintain financial discipline. 

It is worth noting that a foundation is jointly and severally liable for the founder’s obligations arising before its establishment (establishing a foundation and registering it are two different concepts). Furthermore, the foundation’s liability is limited to the value of the property contributed by the founder.

Information about submitted bankruptcy petitions for a foundation, as well as its bankruptcy, can be checked in the National Debt Register (KRZ) .

Family Foundation – how can we help?

Are you planning to establish a family foundation or want to adapt your current statute to upcoming changes in regulations? 

Benefit from professional legal support. Our law firm offers comprehensive legal and tax advice, ensuring the security of your assets and a smooth succession process.