Family Foundations

Swiss Civil Code Article 335: Family Foundation Rules Explained

Article 335 of the Swiss Civil Code (ZGB) is the single provision that defines, and tightly limits, the Swiss family foundation (Familienstiftung). As part of the Swiss civil-law structure governing legal persons, it permits a foundation to hold family assets only to meet the costs of raising, endowing or supporting family members, or similar purposes, and, in its second paragraph, it prohibits the creation of new family fideicommissa. Everything a family can and cannot do with a Familienstiftung flows from these two short rules.

This guide explains what Art. 335 ZGB says, why pure “maintenance” foundations are not allowed, how the Federal Supreme Court reads the article, and what the 2024 reform debate may change.

Key takeaways

• Art. 335(1) ZGB allows a family foundation only for the upbringing (education), endowment, or support of family members, or similar purposes.
• The list of purposes is treated as exhaustive, assistance must be tied to a concrete life situation.
• Pure maintenance foundations that fund general living costs or a more comfortable lifestyle are not permitted.
• Art. 335(2) ZGB prohibits the creation of new family fideicommissa (perpetual entails).
• A reform (Motion 22.4445, 2024) may relax the maintenance ban, but it is not yet law.

What Article 335 of the Swiss Civil Code says

Article 335 sits in the family-law part of the Swiss Civil Code, separate from the general foundation provisions in Articles 80 to 89c, which set out Swiss foundation law. It is the rule that gives the family foundation its purpose, and its boundaries. It has two paragraphs: paragraph 1 states what a family foundation may do; paragraph 2 closes off an older route, the family fideicommissum.

Swiss Civil Code, Article 335, family foundations and fideicommissa (paraphrased; see note below)

Para 1. A body of assets may be tied to a family by means of a family foundation, established under the law of persons or inheritance law, to meet the costs of the raising (education), endowment, or support of family members, or for similar purposes.

Para 2. The establishment of family fideicommissa (Familienfideikommisse) is no longer permitted.

We paraphrase Article 335 faithfully here. At the time of writing we were unable to retrieve an official verbatim English version from the federal law portal (Fedlex); the wording above reflects the official translation as quoted in peer-reviewed academic literature and Swiss legal commentary (see Sources). The authoritative texts are the German, French and Italian versions of the Code.

The three permitted purposes (upbringing, endowment, support)

Everything a Swiss family foundation may pay for must fall under one of three purposes, translated in different sources as upbringing/education, endowment/equipment, and support/assistance (in German, Erziehung, Ausstattung and Unterstützung). They share a common thread: the foundation provides help in a specific situation in life, not an open-ended income.

Upbringing and education

Educational costs cover both basic and continuing education, universities, apprenticeships, vocational schools and similar institutions. Where a beneficiary studies away from home, the cost of living connected with that education can also be covered. The key limit is duration: this support finances the period of education or training, not life in general.

Endowment (setting up in life)

Historically, “endowment” meant the dowry of a daughter on marriage. Today it is read more broadly as help to establish an independent existence, for example, support in setting up one’s own household. It is a one-off step in life, not a recurring entitlement.

Support in situations of need

Support covers financial or other help for family members who are sick, infirm, unemployed, single, or in economic difficulty, the classic domain of family welfare as recognised in Swiss social and private law. Again, the trigger is a concrete need. “Similar purposes” in the statute is read the same way, material help in a life situation where assistance appears necessary or desirable, not a free-standing licence to distribute.

Why pure “maintenance” foundations are barred

A maintenance foundation (or Genussstiftung) is one that simply funds the general living costs of family members, or allows them a higher and more pleasant standard of living, without any specific need. Under Art. 335 ZGB this is not permitted.

The reasoning follows directly from the permitted purposes. The article allows situational assistance; it does not allow the permanent accumulation of assets combined with unconditional benefits to a family line for an unlimited number of generations. A foundation built to provide its beneficiaries with an ongoing income, irrespective of need, falls outside the article.

The consequence is serious. Whether a family foundation is permitted is judged solely by its purpose. If that purpose breaches Article 335, the foundation has no valid legal existence: it cannot be upheld, and its assets revert to the founder or the founder’s heirs. This restriction is widely viewed as a substantive disadvantage compared with foreign family foundations, where broader maintenance purposes are often allowed.

The prohibition on family fideicommissa (paragraph 2)

A family fideicommissum (Familienfideikommiss) is an older institution: a perpetual entail that binds a body of assets to a family lineage, passing down a fixed line of succession and restricting the holder’s freedom to sell or dispose of it.

Paragraph 2 of Article 335 provides that no new family fideicommissa may be created. The institution was effectively closed off by the Civil Code of 1907 (in force from 1912). Fideicommissa that lawfully existed before the Code came into force were permitted to continue, a point the Federal Supreme Court confirmed in case law, but the door to creating new ones is shut. In practice, this leaves the (restricted) family foundation as the lawful Swiss vehicle for tying assets to a family.

How the Federal Supreme Court interprets Article 335

Much of the restriction described above is not spelled out word-for-word in the statute. It is the product of consistent Federal Supreme Court (Bundesgericht) case law that reads the list of purposes in Article 335 as exhaustive and tied to genuine need.

The core principle, drawn from a line of decisions, is that benefits granted without any special condition linked to a particular life situation, simply to let a beneficiary enjoy a higher or more pleasant standard of living, are impermissible and treated as null and void. Conversely, financial or other help for family members who are sick, infirm, unemployed or in economic difficulty is allowed, because it answers a concrete situation.

Decisions in this line include BGE 71 I 265 (the concept of the family foundation, in a federal-tax context), BGE 108 II 393, BGE 127 III 337 and BGE 75 II 81; BGE 135 III 614 addresses the transitional treatment of pre-existing fideicommissa. Together they form the settled, restrictive reading that practitioners apply when drafting foundation statutes.

Practical impact on families and estate planning

For families, the practical message is precise drafting. A Swiss family foundation can be a sound structure, but its statutes must define the circle of beneficiaries and tie every distribution to a permitted purpose. A statute that promises beneficiaries a general income, or open-ended “contributions to living expenses”, risks invalidating the whole foundation.

This is why Art. 335 ZGB shapes the practical use of the Familienstiftung in asset protection through a family foundation and in succession planning. It also explains why, for purely ongoing-maintenance goals, families have historically looked to foreign family foundations or trusts. The starting point for any structure is the foundation itself, see our guide to the Swiss family foundation: definition and establishment.

If you are weighing whether a family foundation fits your circumstances, you can speak to a Swiss foundation lawyer about how Article 335 would apply to your statutes.

Reform outlook: will the maintenance ban be lifted?

The restriction on maintenance foundations is increasingly seen as out of step with comparable jurisdictions, and Parliament has acted. Motion 22.4445, “Strengthen the Swiss family foundation. Lift the ban on maintenance foundations”, introduced by Councillor of States Thierry Burkart, was adopted by the Council of States (December 2023) and then by the National Council on 27 February 2024. It tasks the Federal Council with developing a Swiss maintenance foundation, so that family foundations could in future serve maintenance purposes alongside foreign trusts and structures.

For now, this is a mandate, not a change in the law. No draft bill has followed, and the outcome is uncertain, the Federal Council had earlier raised tax-related concerns. Until any amendment is enacted, Article 335 applies as set out above. We cover the wider changes in our analysis of the Family Foundation Reform 2024.

Frequently asked questions

What does Article 335 of the Swiss Civil Code say? Article 335 ZGB allows a family foundation to hold assets only to meet the costs of the upbringing (education), endowment or support of family members, or similar purposes. Its second paragraph prohibits the creation of new family fideicommissa.

Can a Swiss family foundation pay for general living costs? No. A foundation that simply funds general living costs or a more comfortable lifestyle, without a specific need, is a maintenance foundation and is not permitted under Article 335. Distributions must be tied to a permitted purpose such as education, endowment or support in genuine need.

What are the three permitted purposes under Art. 335 ZGB? Upbringing/education (including training and the cost of living during studies), endowment (help in setting up an independent existence or household), and support (assistance in situations of need such as illness, infirmity or economic difficulty). “Similar purposes” are read in the same situational sense.

Are family fideicommissa allowed in Switzerland? No new ones. Article 335(2) prohibits the creation of new family fideicommissa. Those that lawfully existed before the Civil Code entered into force in 1912 were allowed to continue, but the institution is otherwise closed.

What happens if a family foundation’s purpose breaches Article 335? The foundation is judged solely by its purpose. If the purpose falls outside Article 335, the foundation has no valid legal existence: it cannot be upheld and its assets revert to the founder or the founder’s heirs.

Could the maintenance-foundation ban be lifted? Possibly. Motion 22.4445 (2024) instructs the Federal Council to develop a Swiss maintenance foundation, which would relax the current ban. It is not yet law, and the timing and final form remain uncertain.

Where does Article 335 sit in the Swiss Civil Code? Article 335 is in the family-law part of the Swiss Civil Code, which is separate from the general foundation provisions in Articles 80–89c. This placement reflects the family foundation’s dual character: it is a foundation in the civil-law sense, but its permitted purposes are defined by family law rather than by the general law of foundations.

What does the phrase “similar purposes” in Article 335 cover? “Similar purposes” is read in the same situational sense as the three express purposes, education, endowment and support. It covers other forms of material help tied to a concrete life situation where assistance appears necessary or desirable, not a free-standing licence to distribute income generally. The Federal Supreme Court has consistently refused to treat it as an open-ended authorisation.

Which Federal Supreme Court decisions shape the interpretation of Article 335? The key decisions are BGE 71 I 265 (defining the family foundation concept in a tax context), BGE 108 II 393, BGE 127 III 337, and BGE 75 II 81. These establish that unconditional benefits granted simply to raise a beneficiary’s standard of living are void, whereas help in situations of concrete need is permitted. BGE 135 III 614 deals with the transitional treatment of pre-existing fideicommissa.

Can a Swiss family foundation serve educational costs for a family member studying abroad? Yes. Educational costs include both the fees and the cost of living directly connected with study or training away from home. The key constraint is that the support must be linked to the period of education or training, not extended to general living expenses beyond that context.

How does a family foundation differ from a public-utility foundation in Switzerland? A family foundation under Article 335 ZGB serves a defined family, a closed circle of beneficiaries, and is therefore generally not eligible for tax exemption, which requires an open, indeterminate beneficiary circle. A public-utility foundation under Articles 80–89c ZGB serves the general interest and, if it meets all five cumulative conditions, may qualify for cantonal and federal tax exemption under Article 56 lit. g DBG.

Is “endowment” under Article 335 limited to dowries? No. Although historically “endowment” (Ausstattung) referred to the dowry given to a daughter on marriage, it is now read more broadly as one-off assistance to establish an independent existence, for example, helping a family member set up a household. It remains a single step in life rather than a recurring entitlement.

What happens to a family foundation’s assets if it is found to have an impermissible purpose? The foundation is treated as having no valid legal existence. It cannot be upheld, and its assets revert to the founder or the founder’s heirs. Because the validity of the whole foundation turns on the lawfulness of its purpose, precise statutory drafting is essential before registration.

Is Article 335 the only provision governing family foundations in Switzerland? Article 335 provides the purpose restriction specific to family foundations. The general rules on how a foundation is created, managed, supervised and dissolved are set out in Articles 80–89c of the Swiss Civil Code, and those provisions apply to family foundations as well. The interplay between the two sets of rules means that a family foundation must satisfy both the general foundation requirements and the narrower purpose limits of Article 335.

This article is general information, not legal advice. Foundation rules turn on the specific wording of your statutes and your circumstances; obtain formal advice before acting. Author: Hansruedi Mueller, Swiss foundation lawyer, Foundations in Switzerland, Grafenauweg 4-10, 6300 Zug · +41 41 511 90 04 · info@foundation-switzerland.com. Published 4 June 2026; last updated 4 June 2026.

Sources

• Swiss Civil Code (ZGB), Article 335, Fedlex, Classified Compilation SR 210: https://www.fedlex.admin.ch/eli/cc/24/233_245_233/en (article text paraphrased; official verbatim English not retrievable at time of writing, German/French/Italian versions are authoritative)
• Natalie Peter, “Family Foundations in Switzerland”, Trusts & Trustees, Vol. 26, No. 6 (July 2020), University of Zurich, permitted purposes, restrictive interpretation, BGE references: https://www.ius.uzh.ch/dam/jcr:a1562aba-eb57-4f34-9fde-39eed8176fa2/Trusts&Trustees%206.%20Juli%202020.pdf
• Online Commentary (onlinekommentar.ch), Art. 335 ZGB, permitted purposes and maintenance-foundation prohibition: https://onlinekommentar.ch/de/kommentare/zgb335
• Federal Supreme Court case law: BGE 71 I 265; BGE 108 II 393; BGE 127 III 337; BGE 75 II 81; BGE 135 III 614 (transitional treatment of fideicommissa).
• Reichlin Hess, “Federal Council tasked with developing a Swiss maintenance foundation”, Motion 22.4445 (Burkart), adoption dates: https://www.reichlinhess.ch/en/2024/06/17/federal-council-tasked-with-developing-a-swiss-maintenance-foundation/
• Mondaq, “No Swiss Trust – But Liberalisation Of The Family Foundation”, reform context and maintenance ban: https://www.mondaq.com/trusts/1471212/no-swiss-trust-but-liberalisation-of-the-family-foundation