Compulsory portion: disclosure by private foundations

Private foundations are often set up precisely to order assets permanently – sometimes with the side effect that compulsory portion claims threaten to run empty. With decision 2 Ob 115/25p of 26 March 2026, the Austrian Supreme Court has significantly strengthened the position of those entitled to a compulsory portion.

The decision

Persons entitled to a compulsory portion can demand comprehensive information from a private foundation co-founded by the deceased: on the state of assets at the date of death, on beneficiaries and their distributions – at least where the deceased had reserved rights of influence such as a right of amendment or revocation. In this respect the foundation is to be treated like a donee and must provide the information needed to value the claim.

Why this matters

Without information there is no quantifiable claim: adding foundation transfers back into the estate calculation presupposes that the entitled person learns what was transferred and what it is worth. This is precisely the hurdle at which compulsory portion claimants often failed. The decision hands them a sharp tool – and forces foundations into transparency towards passed-over relatives.

Consequences for structuring

For succession planning this means: anyone choosing a foundation solution should price in rather than suppress compulsory portion claims from the outset – through timely transfers, waivers against settlement, or an endowment able to serve foreseeable claims. And anyone facing an opaque foundation structure as an entitled person now has a disclosure claim confirmed by the highest court as their first lever.