Czech Republic: trust fund — a newly introduced asset management option
The recent re-codification of Czech civil law has introduced a new legal instrument called a trust fund or simply a trust. In adopting the concept originating from Anglo-Saxon legal tradition, the Czech Republic has become one of the few countries in Continental Europe whose legal systems can offer this vehicle, which is attractive for both business and private use.
A trust is a vehicle constituted by a settlor (founder) who transfers property thereto. The trust is administrated by a trustee in favour of a beneficiary — the person(s) intended to benefit from the vehicle. These persons may all be either different or coincide in one person.
An essential feature of a trust is that it has no legal personality, and thus may be only defined by its property and purpose. A trust enables the establishment of a distinct and autonomous set of assets, designated to fulfil any public or private purpose. Its essence is such that while any assets transferred to a trust cease to be owned by the settlor upon the constitution of the trust, they do not become assets owned by anyone else, such as a trustee or a beneficiary…
Click on the link below to read the rest of the Schoenherr briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Schoenherr
Briefings from Schoenherr
The problem in implementing the third pillar of the convention in Austria is that the EU has not yet issued a directive.
A trader must clearly inform consumers in advance about all costs associated with a contract, and other requirements.
Analysis from The Lawyer
Regulators are ramping up the pressure in the aftermath of recession, leaving firms to compete for compliance and restructuring work