How a family fortune is passed on: holdings, foundations and pacts
Great families do not simply bequeath: they organize succession over decades, with precise legal tools.
The Editors · November 8, 2026 · 1 min read
Passing on a family fortune is a long-haul exercise. The main risk is not tax but dispersion: with each generation, shares split and control of the business can slip away.
First tool: the family holding. Heirs own shares in this company, which in turn controls the business. It centralizes decisions and prevents an isolated heir from selling shares to an outsider.
Second tool: the foundation. Several European groups are controlled by foundations, such as the one that holds Novo Nordisk in Denmark or the one that holds Rolex in Switzerland. The company stays stable and protected from a sudden sale.
Third tool: the shareholders' agreement and, in France, the "Dutreil pact", which lightens inheritance duties on businesses in exchange for commitments to keep the shares.
In Anglo-Saxon countries, the trust plays a comparable role: assets are entrusted to a manager for the benefit of designated beneficiaries.
These mechanisms are complex and vary by country. This article is informational and does not constitute legal or tax advice.