Allowance for the transfer of assets to a family foundation

The family foundation is becoming increasingly important in practice as an instrument of business and asset succession. In its recently published ruling of 28.02.2024 (II R 25/21), the Federal Fiscal Court deals with the question of which authorized person should be taken into account when determining the applicable tax class and the tax-free amount when establishing a so-called family foundation in the context of gift tax. Among other things, the ruling illustrates how important it is to avoid unclear formulations regarding the purpose of the foundation in the foundation charter.