Which form of asset management is the better choice for preserving wealth?

 The table below outlines the differences between a trust foundation and a fiduciary trust.

The fundamentals of the fiduciary asset management system

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

A trust is the solution for managing substantial assets

	Trust Management	Asset Management Foundation
Form	contractual form	foundation, court entry
International comparison	trust (Anglo-Saxon)	private foundation (German)
Minimum Capital	None	600 million HUF
Licenses	Non-commercial:  MNB registration Commercial: MNB licens	court entry
Lifespan	up to 50 years	unlimited
Asset manager capital requirements, collateral	Commercial: HUF 70 million and at least 20% of the total assets under management, but no less than HUF 70 million in collateral	None
Governess	asset manager	Board of Trustees, Asset Auditor, Supervisory Board, Statutory Auditor
Operational costs	similar to a medium-sized limited liability company	High costs due to the institutions.
Authority to issue instructions	The settlor cannot give instructions to the asset manager.	The founders may issue instructions to the Board of Trustees.
Corporate tax	- Corporate income tax: 9% - Tax deductions may be applied - Possibility of full tax exemption	It's the same as with a trust.
Taxation on the disposal of assets	- the beneficiries can pay tax - The payment of returns is taxed as dividends - The initial capital is taxable if the assets were revalued at the time of the asset transfer and at least five years have not yet elapsed - Exemption from stamp duty between close relatives	It's the same as with a trust.
Beneficial owner	Asset owner + Asset manager + Beneficiary + Authorized representative in any order	Fixed order: 1. beneficiary (interested party) 2. member of the managing body 3. person with influence over the assets

With

With the support of LeitnerLeitner’s Private Clients Division, choose the solution that best fits your needs and goals! Take advantage of LeitnerLaw’s family office and succession planning services! We are here to provide you with comprehensive professional support throughout the implementation process.