Trust funds - Establishment of a trust fund
The Trust Fund is created to separate property from the ownership of its founder. There may be more reasons for its creation. Above all, however, they serve to protect family or corporate property, publicly beneficial purposes (support to universities, children's homes, hospitals, shelters, etc.), but last but not least, they serve to support your offspring in their studies at university.
The price of creation depends on the value of the reserved property. In case of interest, it is necessary to specify:
- What kind of property will be included in the trust
- who will be its administrator
- To whom the proceeds will pass
- When the Trust Will End
If we give an example and it is a business interest in the company - CZK 200,000, the company would have assets of CZK 5 million, the administrator would be a different person than the founder, the proceeds will be passed on to the founder and the trust would be for a period of 6 years, the price would be CZK 29.000.
In the main roles of the founder, administrator and imagined
A trust fund can be created by virtually anyone who decides to set aside at least part of their own assets with a specific purpose. Such a person automatically becomes the founder of a trust fund. The property which has been earmarked, held and managed by its trustee, which the Founder can choose and which is committed to this activity or has to accept the mandate. The last person who plays an important role here is thought-out (beneficient). He's a man or an organization to be filled with property.
Apparently the most important person in the trio involved, so we are talking about the founder of the trust fund, its administrator and the imagined, is the administrator himself. Anyone who is a person of his right may become one, but he must comply with all the rules of this function. Its duty is literally to save and reproduce the nature of the trust fund and fulfill its purpose. In theory, even the founder of trust or thoughtfulness can become the keeper. In that case, however, it would be necessary to choose another co-manager who is neither the founder nor the imagined one to minimise the risks arising from this relationship.
The advantage is the creation of anonymous property
As has already been mentioned, the trust fund is set up for the purpose of achieving property that is not linked to anyone. Property is usually made up of shares, securities and shares in a limited liability company. However, this may not be the rule. The owner of such a separate property is neither its manager nor the founder of the fund, but also the person to whom it is intended to be filled out of this fund, i.e. thoughtful. The assets of the Fund shall be entered in the official registers in question where it is registered on the trust manager. However, the identity of the Founder is not stated anywhere. The undoubted advantage of such separate property is that it is so called anonymous, which means that creditors cannot and cannot be affected by execution. Moreover, the founder of the trust reduces his tax base by this step, which logically leads to lower tax charges.
The Trust Fund in the Czech Republic can be established under the new Civil Code from 1 January 2014. Its founder can be both a natural and legal person. The fund is an entity and its obligation is to keep accounts and becomes a taxpayer.
Establish a trust fund with optimal structure with our help
Thanks to our long-term experience with establishing trust in the Czech Republic and according to Czech legislation, we can help you to speed up the whole process, which is necessary for establishing trust and lead to a successful end. If you decide to use our services in establishing and managing a trust fund, we will ask for the following additional information:
- It will be necessary to specify what property you wish to set aside in trust
- Choose a person to be appointed by the property manager
- Identifying a specific imaginary
- Clarify when your established trust will end its operation
The price of registration of the trust fund shall always depend on the value of the reserved assets. The Trust Fund is a very interesting institute offering many possibilities that can be used very well. Just have enough quality information and allies to assist you with its creation and administration, if necessary. With us, you will be able to take full advantage of this unique opportunity.