By Gabor Gelencser
April 2019 – The Hungarian Parliament passed the Act on Foundation Trusts on 5 March 2019. This legal concept has had a long and successful history in German-speaking countries. The main purpose of lawmakers in introducing this concept is to provide a legal framework – in addition to the already operating trusts – to manage, preserve and enlarge private equities owned by families for future generations. Please find below a brief overview of the most noteworthy regulatory features. The Act entered into force on 29 March 2019.
The purpose of a foundation trust
The main purpose of a foundation trust is to manage assets that were given by the founder to the foundation trust in order to achieve the objectives set out in the deed of foundation.