Foundations recognized as being of public utility are called “public utility foundations”. Other foundations are called “private foundations”.

The purpose of the Private Foundation is to collect the assets (an estate, a mansion, paintings and precisely our NFTs) of a person during his or her lifetime or after his or her death to be used for a defined purpose or a specific person.

“The conservation, promotion or management of a private art collection are all objectives that meet the criterion of disinterested purpose, in the same way as the memory of an artist or a patron” ( Alexis CRUYSMANS – la fondation d’utilité publique et la fondation privée – Patrimoine et œuvres d’art – Questions choisies – 1re édition 2016 – Larcier – P. 293.).

Many people resorted to the Anglo-Saxon “trust”, the Luxembourg “fiduciary”, the “stichting” of the Netherlands, the foundation under Liechtenstein or Swiss law, and other Stiftungen in Germany, whose law offered greater possibilities for private foundations. Some people have also created “foundations” in Belgium under the cover of ASBL.

Since the law of May 2, 2002, it is possible to create a foundation in Belgium that will collect the estate, the manor, the paintings and the goods of the deceased before or after his death.

This patrimony will be managed by administrators whose competence the founder can ensure. Legal or statutory rules will also prevent “indelicacy” on the part of the administrators.

In order to ensure the continuity of a company, it is also possible to create a foundation that will hold the shares of the company and issue securities. This is the certification of securities. In practice, the company manager will set up a board of directors in his foundation in whom he has confidence.

It is the foundation that owns and exercises the voting rights attached to the shares and therefore “controls” the company.

The company manager will only leave to his descendants, whose management qualities or simple will to continue the operation he might distrust, the economic rights attached to the shares: dividends and capital gains or liquidation bonuses.

A real “calendar” of progressive transfer of economic and legal rights can thus be set up with the choice for the manager to distribute either the revenues of his company or its management and control.

In practice, such a foundation also serves to transfer the power of control to the heirs deemed most capable by the entrepreneur while retaining the right to the financial flows of the company for the others. Conversely, a foundation or trust may well remain unknown to the heirs, unlike a gift which necessarily requires the acceptance of the donee.

The foundation has no members. It is simply the result of the allocation of a patrimony to a specific purpose. It offers the advantage of a distinct legal personality, unlike an undivided estate. Without members, the foundation does not have a general assembly but only a board of directors in charge of managing the patrimony of assignment in order to pursue the disinterested goal.

Without members or associates, the private foundation is managed by a board of directors, the only legally binding body. However, there is nothing to prevent the foundation from having other bodies such as an artistic council, a family council, a supervisory board, an advisory committee, etc. (See: Alexis CRUYSMANS – la fondation d’utilité publique et la fondation privée – Patrimoine et œuvres d’art – Questions choisies – 1re édition 2016 – Larcier – P. 297).

The founder can also set up a foundation by authentic will, which will only take effect at his death. In this case, the foundation can receive the gifts stipulated in the same will as a legacy. This allows the collector to keep the full ownership of his collection until his death.

The parliamentary work illustrates these goals: safeguarding a collection of works of art or buildings, supporting the development of a region, creating a prize or a work, maintaining the family character of a business, maintaining the integrity of elements of the patrimony of a natural person. But we will also think about the protection of family interests (ensuring the health and education of my children and grandchildren without giving them the possibility of “squandering” my assets), the assignment of a castle to ensure its maintenance and conservation, a unique and efficient organization that we want to preserve from breaking up after our death,…

Read: Mon château, solide sur… sa Fondation by Christophe Boeraeve in Guide patrimonial et successoral de la Libre Belgique and La fondation présente beaucoup d’attraits by Frédéric Lejoint, Juliette & Victor, 57, p. 153 et sv.