Attaching a future private foundation distribution: requirements

Section 5 PSG determines beneficiary status. It does not by itself mean that the private foundation must make every later payment. Attachment requires identification of the legal position held by the beneficiary.

A claim may exist before the payment date if the deed or a valid resolution sufficiently determines recipient, calculation, period and due date. The position is different where the foundation board is still free to decide whether and how much to distribute.

The distinction from beneficiary information and inspection rights remains important. An information right under section 30 PSG is not a claim to a particular distribution.

Under section 294 EO, claim enforcement requires a claim of the debtor against a third party. The application must identify the enforcement object so that the relevant claim can be distinguished from other rights.

Fixed calculation rules may be sufficient where the period and recipient are set and only the payment date is in the future. A variable amount is not automatically fatal if it can be calculated from the deed or a valid resolution.

If the basis is missing or the competent body may freely decide later on the occasion and amount, the wording “all future distributions” usually does not identify one sufficiently specific claim. Attachment cannot be based on a general hope of receiving a payment.

The article on distribution resolutions and payment records explains the documentation of the internal payment decision.

If a court payment prohibition is served on the private foundation, it must review which future claim is covered. It cannot simply block every later distribution where the application does not identify a specific claim or period.

Conversely, the foundation must not pay an identified existing claim merely because its payment date has not arrived. The claim, service and any objections must be documented separately.

Section 17(2) PSG additionally protects the foundation's creditors. Distributions must not diminish their claims. This internal foundation-law review is separate from attachment of the beneficiary's claim.

The article on beneficiary determination and records covers the preceding status question. The payment prohibition adds the claim basis, period and service.

For monthly, annual or event-based distributions, period separation is essential. A claim for the current year may have arisen while the next year remains subject to a discretionary decision.

A fixed percentage may also depend on additional requirements, such as a balance-sheet date, documents or a permitted liquidity review. Those requirements must remain visible in the application and third-party statement.

A blanket attachment of every current and future payment may therefore be too broad. The creditor should limit the claim by the deed, the specific resolution and the relevant period.

Where deed versions differ, the article on deed versions and disclosure is a useful starting point.

The creditor file should contain the enforceable title, current balance and documents identifying the beneficiary. The future distribution review also needs the effective deed, supplementary deeds, resolutions, calculation records and payment arrangements.

The foundation additionally needs its current register position, representation rules, minutes of the competent body, payment schedule and court service documents. The relevant period should be stated expressly for recurring payments.

If pages are missing or several versions exist, an old draft cannot close the review. The glossary entry on the supplementary deed explains its function, but its effect on a distribution must be checked in the complete file.

A common mistake is equating beneficiary status with a claim. Section 5 PSG answers status, not automatically the right to payment.

Another mistake is carrying an earlier payment over to every later period. Each distribution may have its own conditions, resolution and calculation.

A third mistake is describing the enforcement object too broadly. The foundation must be able to identify the future claim and the relevant period.

An open condition does not necessarily prevent a claim, but it must be shown in the application and third-party statement. An expectancy must not be presented as a due payment.

Finally, creditors of the foundation are often confused with personal creditors of the beneficiary. Section 17(2) PSG protects foundation creditors, while personal enforcement targets the beneficiary's claim.