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Trust funds and succession
Family assets and a business that last for the next generation. I help set up a trust fund (svěřenský fond) or holding structure so that assets stay together and the handover goes the way you want.
How I can help
Trust fund
- A tailor-made trust fund statute
- Deed establishing the fund and choosing the trustee
- Naming beneficiaries and setting distribution rules
- Settling real estate, shares and other assets into the fund
- Entry in the register of trust funds
- Amending the statute and administering an existing fund
Handing over the business and assets
- Handing the company to the next generation – transfer or gift of shares
- Holding structures for family assets
- Separating operating and investment assets
- Decision-making rules among family members
- Gradually handing over management to successors
Typical situations
You want to hand the company to your children, but not all at once.
I set up a gradual transfer of shares and decision-making rules so that you keep control until a set time.
You have several children and one company.
A trust fund or holding keeps the company together while your children share in the income under rules you set.
You want to separate family assets from business risks.
Assets must be settled in good time and in good faith – otherwise creditors can challenge it. I set it up so that it holds.
Family property should serve future generations too.
The fund can hold the property long-term and determine who may use it and who receives the income.
How I set up a trust fund
From plan to registration- 1 Plan We discuss what you want to protect and to whom, and on what terms, the assets should pass.
- 2 Design I propose a suitable structure – a trust fund, a holding or a combination.
- 3 Documents I prepare the statute, the establishing deed and the asset transfer documents.
- 4 Registration I arrange the notarial deed, registration and the transfer of assets into the fund.
Fees
The fee depends on the brief. You always know it upfront.
The statute of a trust fund requires the form of a public deed – fees do not include the notary’s fee. When transferring assets into the fund, it is advisable to involve a tax adviser.
FAQ
What is a trust fund (svěřenský fond)?
Assets set aside by the settlor for a particular purpose and administered by a trustee. These assets are owned neither by the settlor, nor the trustee, nor the beneficiary (Section 1448 of the Czech Civil Code).
When does a trust fund come into existence?
On the day of its entry in the register of trust funds (Section 1451(2) of the Czech Civil Code).
Is a notary needed?
Yes, the statute of a trust fund requires the form of a public deed (Section 1452(3) of the Czech Civil Code). I prepare the documents and arrange the notary appointment.
Will the fund protect assets from creditors?
Assets in the fund are separate from the settlor’s assets. But they must be settled in good time and in good faith – a transfer made when debts are already looming can be challenged by creditors.
Trust fund or holding?
A holding suits running a business and separating risks; a fund suits holding assets long-term and passing them on. The two are often combined. We assess tax implications with a tax adviser.
Thinking about how to pass on your assets?
Describe your situation – what you want to protect and to whom you want to pass it on. Everything is covered by attorney–client confidentiality. The first 15 minutes of a consultation are free.