Foreign nationals can also benefit from the advantages of Hungarian fiduciary asset management

The legal framework of fiduciary asset management can offer numerous advantages to foreign investors and wealthy families even in an international context. Neither the settlors, the asset managers, nor the beneficiaries are required to be Hungarian citizens, and it is also not a requirement that they reside in Hungary for an extended period.

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 placed into asset management can be of a wide variety: foreign or domestic real estate, vehicles, works of art, collections, securities, business shares, intellectual property, and receivables.

The advantages of fiduciary asset management

• the assets are separated from the settlor’s and the trustee’s personal and business property,,
• 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,
• at the same time, a company placed under asset management can be kept intact, and its operation can continue smoothly even after the owner’s death..

The establishment of fiduciary asset management

The settlor, that is, the owner of the assets, transfers all or part of their assets to the asset manager by contract, who preserves and increases them in the interest of the beneficiaries and distributes them to them at the time specified in the agreement.

The parties involved in fiduciary asset management

Trustee: a natural person or a company who 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.

The favourable taxation of fiduciary asset management

Taxation depends on the composition of the assets placed under management and their utilization, but fiduciary asset management can even achieve tax exemption.

The advisors of the LeitnerLeitner and the LeitnerLaw Private Clients and Family Office Services Competence Center provide assistance in selecting the appropriate form of asset management, preparing the agreement, planning taxation, and handling administration. The LeitnerLeitner and the LeitnerLaw Private Clients and Family Office Services Competence Center is pleased to support you with a comprehensive service package.