Duration and dissolution of the trust fund

The duration of the fund must always be specified in the statute. If the duration is not specified in the statute, the statute is not considered invalid – however the fund is considered to be founded for an indefinite period.

The trust fund is dissolved on expiry of the period for which the trust fund was established. Trust funds may also be dissolved once the intended purpose is fulfilled, on the decision of the court or if all beneficiaries renounce their right to receive payment from the trust fund.

The trust fund is dissolved with liquidation, therefore it is always necessary to settle (liquidate) all the fund’s assets and debts (liabilities). Any liquidation balance, i.e. assets remaining after liquidation, will be transferred to the person designated in the statute, otherwise the beneficiary, and if there is no beneficiary, then to the founder, and if there is no founder, then to the state.