Family Foundation (Familienstiftung)

German law allows for family foundations (Familienstiftungen), which is conducted for the personal benefit and the advancement of one or more families. A German family foundation is not tax-privileged and the creation of a family foundation and later endowments to the foundation generally trigger German inheritance and/or gift tax. Domestic Family foundations are liable for a substitute inheritance tax (Erbersatzsteuer), which accrues every 30 years.