Family Foundations

Swiss Family Foundation Reform 2024: New Opportunities and Changes

The Swiss family foundation reform 2024 refers to two separate developments that are often confused. First, a package of general foundation-law amendments came into force on 1 January 2024, improving governance flexibility for all Swiss foundations. Second, in early 2024 Parliament adopted a motion instructing the Federal Council to draft a bill that would lift the long-standing ban on family maintenance foundations. That second, more significant change is not yet law, a bill is being prepared, and the current restriction in Article 335 of the Swiss Civil Code still applies.

A Familienstiftung (family foundation) is a private-purpose foundation that holds and transmits family wealth. Understanding what has actually changed, and what has not, matters before you plan around it.

Not yet law. The headline change discussed in the press, allowing a Swiss family foundation to pay ongoing maintenance to relatives, has not been enacted. It exists as a parliamentary instruction to the government, not as a statute. Until a bill is drafted, consulted on, passed by both chambers and brought into force, the maintenance prohibition under Article 335 ZGB remains in full effect.

Key takeaways

• The “reform 2024” covers two distinct things, an enacted modernisation package and a still-pending liberalisation of maintenance foundations.
• In force since 1 January 2024: easier amendments to a foundation deed, a founder’s reserved right to organisational changes, and a clearer supervisory-complaint regime.
• Not changed: the ban on family maintenance foundations under Swiss Civil Code, Article 335, remains in place.
• The Burkart motion 22.4445 instructed the Federal Council to prepare a bill lifting that ban, adopted by both chambers in late 2023 and early 2024.
• Until any new law takes effect, plan under current rules. Maintenance-style support generally cannot run through a Swiss family foundation today.

What the “reform” actually refers to: the Burkart motion

Most of the attention around a Swiss family foundation reform comes from a parliamentary motion, not from a new statute. Motion 22.4445, “Strengthen the Swiss family foundation. Lift the ban on maintenance foundations” (Die Schweizer Familienstiftung stärken. Verbot der Unterhaltsstiftung aufheben), was submitted by Councillor of States Thierry Burkart on 15 December 2022.

A motion is a binding instruction to the Federal Council, not a law in itself. It directs the government to prepare a draft. This one asks the Federal Council to propose an amendment to Swiss Civil Code, Article 335 that would allow a family foundation to provide for the maintenance, the general living costs, of family members, which is currently prohibited.

The motion cleared both chambers of the Federal Assembly:

• The Council of States (Ständerat) adopted it on 12 December 2023, by 31 votes to 12.
• The National Council (Nationalrat) followed in February 2024, by 116 votes to 69.

With both chambers in agreement, the instruction stands: the Federal Council must now draft a bill. Notably, the Federal Council had originally recommended rejecting the motion, so this is Parliament directing the executive rather than a government-led reform.

Why reform is on the table: the Article 335 maintenance ban

To understand the proposed change, you need to understand the constraint it targets. Under Swiss Civil Code, Article 335, a family foundation may be endowed to cover the costs of raising, establishing or supporting family members, or for similar purposes. For roughly seventy years, however, the Federal Supreme Court has read this narrowly: a foundation set up simply to fund the general upkeep or lifestyle of relatives, a maintenance foundation (Unterhaltsstiftung), is impermissible.

The practical effect is that the Swiss Familienstiftung has been described as a “dead letter.” Distributions are confined to specific, limited purposes, so families seeking a flexible vehicle for succession and wealth planning have often looked abroad, to a Liechtenstein family foundation or to common-law trusts. The Burkart motion is, in effect, a response to that competitive gap. (For the detail of the rule itself, see our explainer on Swiss Civil Code Article 335 and family foundation rules, and for the wider statutory framework, our guide to Swiss foundation law under Civil Code Articles 80–89.)

What already changed on 1 January 2024

Separately from the maintenance debate, a genuine reform of Swiss foundation law did enter into force on 1 January 2024. It came from a 2014 parliamentary initiative (Luginbühl, 14.470), was approved by Parliament in 2021, and applies to all foundations, including family foundations. The main changes are:

• A broader reserved right of amendment (Article 86a, revised Civil Code). A founder may now reserve the right to request future organisational changes to the foundation, not only changes of purpose, for example, converting a perpetual foundation into a spend-down model. A minimum interval of ten years applies between such changes.
• Simplified minor amendments (Articles 86b–86c). Minor amendments to a foundation deed now require only objective grounds, and the supervisory authority can confirm them without public notarisation.
• A regulated supervisory-complaint right (Article 84 paragraph 3). The law now sets out an exhaustive list of who may complain to the supervisory authority about unlawful conduct by a foundation body, beneficiaries, creditors, the founder, contributors and current or former board members.

These amendments make Swiss foundations more adaptable and clarify oversight. They do not, however, touch Article 335. They do not permit a family foundation to make maintenance distributions. It is precisely this gap that the Burkart motion seeks to close, and why the two strands of “reform” should not be merged.

What could change if the bill passes

If the Federal Council’s bill is eventually drafted, passed and brought into force, the central change would be the removal, or relaxation, of the prohibition on maintenance foundations. A Swiss family foundation could then, in measured terms, support the general living costs of family members and serve more openly as a succession and asset-planning vehicle, closer to structures already available in neighbouring jurisdictions. Commentators describe this as the most significant piece of Swiss family law reform affecting private foundations in a generation, though any legislative reform will still need to clear consultation, parliamentary debate and a commencement date before it binds anyone.

Several questions remain open in the legal debate and will only be settled by the eventual text. They include whether a maximum lifetime should be imposed on family foundations, how far a founder may reserve rights to revoke or amend the foundation’s purpose, and how distributions would be treated for tax. None of this is fixed. Each point above is conditional: it describes what may happen, not what the law currently allows.

Current status and timeline: not yet law

As of mid-2026, the reform of maintenance foundations remains at the drafting stage. Parliament has issued its instruction; responsibility now sits with the Federal Council to prepare a preliminary draft (Vorentwurf) and open a public consultation (Vernehmlassung), after which a bill would return to Parliament for debate and vote, and only then enter into force.

At the time of writing, we have not been able to confirm a published preliminary draft or an opened consultation. Swiss legislative processes of this kind typically run over several years, and the outcome is not guaranteed. We will update this page as the Federal Council publishes the draft and consultation materials. Until a new law actually takes effect, the current Article 335 restriction governs, and you should plan on that basis.

What it could mean for families

For high-net-worth individuals, family offices and expatriates weighing a Swiss structure, the practical message is one of patience and precision:

• Plan under today’s rules. A Swiss family foundation remains a sound vehicle for asset protection, governance and confidential, structured wealth-holding, within the limits of Article 335. It is not, today, a maintenance vehicle. Our family foundation pillar guide sets out what is and is not permitted, and our note on family foundation privacy and confidentiality covers the discretion these structures still offer.
• Do not act on the reform before it exists. Designing a foundation around maintenance distributions that are not yet lawful would be premature and could undermine the structure.
• Keep alternatives in view. Where flexible family maintenance is essential now, established options such as a Liechtenstein family foundation or a trust may fit better in the interim, a comparison worth taking advice on.

If the bill passes, existing and new Swiss family foundations may gain meaningful new flexibility. The prudent course is to build a structure that is sound under current law and capable of adapting if the rules change, which the 1 January 2024 amendments, with their broader reserved right of amendment, now make easier.

Frequently asked questions

Is the Swiss family foundation reform 2024 now in force? Partly. A general modernisation of foundation law took effect on 1 January 2024, improving deed amendments, founder rights and supervisory complaints. The more significant change, lifting the ban on family maintenance foundations, is not in force; it remains a bill in preparation following the adopted Burkart motion.

Can a Swiss family foundation pay maintenance to family members in 2026? No. Under Swiss Civil Code, Article 335, a family foundation may only cover specific purposes such as raising, establishing or supporting family members. Pure maintenance distributions for general living costs remain prohibited until and unless new legislation changes the rule.

What is the Burkart motion 22.4445? It is a parliamentary motion submitted by Councillor of States Thierry Burkart in December 2022, instructing the Federal Council to draft a bill that lifts the ban on family maintenance foundations under Article 335. It was adopted by the Council of States in December 2023 and the National Council in February 2024.

Should I set up a family foundation now or wait for the reform? That depends on your goals. If your aim is asset protection, governance and structured succession within current rules, a Swiss family foundation can be established now. If your plan depends specifically on maintenance distributions, the law does not yet permit them, and you should take advice on interim alternatives. We are glad to help you assess the timing.

What does “motion” mean in Swiss parliamentary procedure, is it binding? A parliamentary motion (Motion) is a binding instruction to the Federal Council to prepare draft legislation. It is not itself a law, and it does not automatically create or amend any statutory rule. Once adopted by both chambers, the Federal Council must act on it, but the resulting bill must still pass consultation, parliamentary debate in both chambers and commencement before it becomes part of the Swiss Civil Code.

What is Article 335 of the Swiss Civil Code? Article 335 is the provision of the Swiss Civil Code that governs family foundations. It permits assets to be dedicated to the upbringing, endowment and support of family members, but no more. The Swiss Federal Court has consistently read this as excluding a “pure maintenance foundation,” meaning a structure that simply funds the general living costs of relatives. This provision has remained largely unchanged for over a century and is the central target of the Burkart motion.

Did the Federal Council support the Burkart motion? No. The Federal Council recommended rejecting motion 22.4445. Both chambers of Parliament nevertheless adopted it, the Council of States in December 2023 and the National Council in February 2024. The result is that Parliament has instructed the Federal Council to draft a bill against the government’s own initial recommendation.

What were the main foundation-law changes that came into force on 1 January 2024? The January 2024 amendments, rooted in a 2014 Luginbühl parliamentary initiative, introduced three principal changes: a broader reserved right of amendment allowing a founder to modify organisational rules (not just purposes) every ten years under Article 86a; a simplified procedure for minor deed amendments under Articles 86b–86c; and a codified list of who may bring supervisory complaints under Article 84 paragraph 3. None of these amendments touch Article 335 or the maintenance prohibition.

What is an Unterhaltsstiftung and why is it currently prohibited? An Unterhaltsstiftung (maintenance foundation) is a family foundation whose primary purpose is to fund the ordinary living expenses or general welfare of family members, without tying distributions to education, a life event or genuine hardship. The Swiss Federal Court ruled this structure inadmissible because it in effect creates a perpetual family endowment in favour of a lineage, similar to the family entails (Familienfideikommisse) that Article 335 explicitly prohibits. The Burkart motion seeks to lift that prohibition.

What alternatives exist today for families that need maintenance-style support? Until the bill becomes law, families wishing to distribute income or capital freely for general family living costs should look at structures outside the Swiss family foundation. A Liechtenstein family foundation permits broader distribution purposes. A discretionary trust in a common-law jurisdiction offers similar flexibility. Within Switzerland, a well-structured inheritance or testamentary trust arrangement may also work depending on the family’s domicile and tax position. These are not equivalent to a Swiss Familienstiftung and each carries its own governance, tax and confidentiality profile; specialist advice is essential.

Will the reform affect existing Swiss family foundations? If legislation eventually passes, it would likely apply to both new and existing family foundations, allowing existing deeds to be amended to add maintenance purposes. However, the precise transitional rules, whether retrospective, whether requiring a deed change, and how the supervisory or tax treatment would change, will only be clear once the bill is published. Under the 1 January 2024 amendments, founders now have a broader reserved right to request organisational amendments, which improves flexibility for adapting a foundation once a new law is in force.

How long could the legislative process take? Swiss legislative reform of this type typically spans several years. After the Federal Council publishes a preliminary draft (Vorentwurf) and opens a public consultation (Vernehmlassung), it prepares a dispatch (Botschaft) for Parliament. Both chambers then debate the bill, potentially with differences requiring a conciliation procedure, before the final text is put to a public referendum period. A realistic estimate, based on comparable Swiss civil-law reforms, is three to five years from the parliamentary mandate, meaning entry into force is unlikely before the late 2020s at the earliest, and is not guaranteed.

Is Switzerland unusual in restricting family maintenance foundations? Yes, by European comparison. Neighbouring Liechtenstein already permits private family foundations with broad distribution purposes, which is one reason many Swiss families currently use that jurisdiction. Austria and several other civil-law countries allow flexible family foundation structures. The Burkart motion is explicitly a response to that competitive gap, the motion’s title notes the aim of “strengthening the Swiss family foundation” and describes the current law as leaving Switzerland at a disadvantage. Whether Swiss law ultimately converges with Liechtenstein will depend on the bill’s final scope.

Does the reform affect the tax treatment of Swiss family foundations? The Burkart motion addresses the permitted purposes of a family foundation under civil law, not its tax status. A Swiss family foundation is not tax-exempt: it is subject to cantonal and federal income and wealth taxes on its assets and income. Tax treatment of distributions, and any future changes arising from the reform bill, will need to be assessed separately when a draft is published. Until then, current tax rules apply without change.

Where can I monitor progress of the reform bill? The official record is published on the Swiss Parliament’s Curia Vista database. The Federal Council will publish the preliminary draft on the fedlex.admin.ch portal and open a formal consultation once ready. We will update this page when a preliminary draft is confirmed. In the meantime, subscribing to publications by Swiss foundation-law specialists, such as THE PHILANTHROPIST, MME and Reichlin Hess, is the most reliable way to track developments.

Disclaimer

This article is general information about Swiss foundation law and the proposed reform. It is not a substitute for formal legal or tax advice. Legislative status can change; verify the current position before acting. For advice on your circumstances, speak to a Swiss foundation lawyer.

Sources

• Swiss Parliament, Motion 22.4445, “Die Schweizer Familienstiftung stärken. Verbot der Unterhaltsstiftung aufheben” (Burkart, 15 December 2022): https://www.parlament.ch/de/ratsbetrieb/suche-curia-vista/geschaeft?AffairId=20224445
• Council of States adoption (12 December 2023), THE PHILANTHROPIST, “Ständerat will Familienunterhaltsstiftungen zulassen”: https://thephilanthropist.ch/staenderat-will-familienunterhaltsstiftungen-zulassen/
• THE PHILANTHROPIST, “Parlament behandelt Motion zu Familienstiftungen” (National Council, February 2024): https://thephilanthropist.ch/parlament-behandelt-motion-zu-familienstiftungen/
• MME, “A brief overview of the new foundation law from 2024” (amendments in force 1 January 2024; initiative 14.470): https://www.mme.ch/en/magazine/articles/a-brief-overview-of-the-new-foundation-law-from-2024
• Mondaq, “No Swiss Trust – But Liberalisation Of The Family Foundation”: https://www.mondaq.com/trusts/1471212/no-swiss-trust-but-liberalisation-of-the-family-foundation
• Swiss Civil Code (ZGB), Article 335 (family foundations): https://www.fedlex.admin.ch/eli/cc/24/233_245_233/en