Divorce increases the tax burden of people who had previously created a family foundation

The marriage that together founded the Family Foundation may suffer tax consequences after a divorce that it ceased to be legally the closest family, i.e. lose favorable reliefs – indicates law.pl. Experts advise to rethink the legal and tax consequences before establishing the Foundation in the context of any changes in the personal situation.

According to Prawa.pl, the provisions on the Family Foundation, which has been in force for over two years, proved to be a great success, as evidenced by over two thousand entities registered so far. At the same time, experts point out that whether to establish a foundation will be a favorable solution, a number of factors, including personal factors, are influenced.

According to Prawa.pl, the spouses creating the Family Foundation benefit from a full tax exemption in the case of payments from the Foundation, because they belong to the so -called zero tax group referred to in art. 4a of the Act on inheritance and donation tax. The problem is that after a divorce, my husband and wife cease to be a closest family for themselves. The treasury recognizes that for the purposes of applying the exemption, the founder's relationship with the beneficiary as at the date of payment of the benefit, and not when the property was paid to the Foundation. Consequently, you have to pay 15 percent from some of the payments. Pit.

According to Szymon Konieczny, a legal advisor, manager at MDDP, when planning to establish a foundation, especially together with the spouse, it is worth thinking about legal and tax consequences, not only in the context of the current family situation, but also potential changes.

“A safer solution may be to establish separate foundations by spouses, which will protect the founders in the event of any changes in private life,” says Szymon Konieczny in Prawa.pl.

However, parents' divorce does not affect payments to children who are the beneficiaries of the Foundation. Common children of former spouses can still benefit from full dismissal from PIT.