TRUST FUNDS – changes in obligatory registration
Things do not have to be complicated to work correctly. Rather vice versa. The easy solution for intergenerational property transfer , property protection with inheritance and against creditors or for the preservation of family assets can be trust funds.
From the 1st of January 2018, the new amendment of the public registers will be valid. The law will be newly called the “Act on public registers of legal and natural persons and on the registration of trust funds”. This says everything about the law..
The newly developed trust funds will be obligatorily registered into the register under the regional court. It means a variation of the existing commercial or endowmnet register. The trust administrator is responsible for the proposal and documenting the documents to the court. According to the amendment to the law on court fees, registration and changes in the trust fund will be free from court fees, which is a pleasant surprise in our circumstances.
It will be necessary to enter the name and purpose of the trust fund, possibly the subject of the activity, day of development or identification number into the trust funds´ evidence. Furthermore, the number of the trust administrators, how they act with administering the trust and their place of residence is also required.
Moreover, it will be necessary to enter data of the founder and all of the beneficiaries. However, the amendment foresees that the data on the founder and the beneficiaries will not be disclosed in the records of the trust funds nor will they be published.
The trust register will also register the basic documents. It means the status and decision about appointing a trust administrator. Furthermore, documents about deposits entered into the trust fund are also required.
Existing trust funds are obliged to be entered into the trust register within the additional deadline by the 30th of June 2018.
All of the above-mentioned obligations increase the administrative burden and deepen the general loss of privacy. On the other side, the implementation of the trust fund will contribute to greater legal certainty for both the founder and the beneficiaries. The trust funds will be without this negative shadow of an institute hiding assets and will lead to their development, especially in case of the so-called family trust funds.
Thanks to the trust fund, intergenerational property transfers can be solved very elegantly and easily, as well as property protecting with inheritance and against creditors, maintaining the integrity of the property and preserving family assets.
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