Foreign nationals can also benefit from the advantages of Hungarian trust management

 The legal institution of trust management can offer numerous advantages to foreign investors and wealthy families, even in an international context. This is because neither the settlors, nor the trustees, nor the beneficiaries are required to be Hungarian citizens, nor is it a requirement that they reside in Hungary for an extended period of time.

The structure of fiduciary asset management is fully open to foreign nationals: international investors can manage their assets from Hungary under favorable terms even if they do not reside here.

The assets that can be included in trust management are extremely diverse: foreign or domestic real estate, vehicles, works of art, collections, securities, business interests, intellectual property, and receivables.

The advantages of trust management

• the assets are separate from the personal and business property of the settlor and the trustee,
• it provides protection against external claims and creditors,
• the assets under management are not subject to probate proceedings; in the trust agreement, the settlor is free to determine the beneficiaries, their shares, and the conditions and timing of their acquisition of the assets,
• A company placed under asset management can continue to operate seamlessly even after the owner’s death.

The Establishment of a Trust

The settlor, that is, the owner of the assets, transfers all or part of their assets to the trustee by contract. The trustee preserves and increases these assets for the benefit of the beneficiaries and distributes them to the beneficiaries at the time specified in the contract.

The parties involved in fiduciary asset management

Trustee: a natural person or a corporation: bears full legal responsibility for the management of the transferred assets.

Beneficiaries: private individuals, family members, charitable organizations, or other legal entities. The settlor may also be a beneficiary.

Tax Advantages of Trust-Based Asset Management

Taxation depends on the composition and use of the assets held in the trust, but trust-based asset management can even achieve tax-exempt status.

The advisors at LeitnerLeitner and the LeitnerLaw Private Clients and Family Office Services Competence Center assist with selecting the appropriate trust structure, drafting the agreement, tax planning, and administration. We are pleased to offer you the full range of services provided by LeitnerLeitner and the LeitnerLaw Private Clients and Family Office Services Competence Center.