Investment trust fund
A trust fund can also be established for the purpose of business and generating profit.
Security trust fund
The founder of the trust fund can secure him/herself and his/her immediate family in the event of injury or death through the fund.
Testamentary trust fund
A testamentary trust fund can be established with a provision in the event of death (will).
Welcome to the website of Kučera & Associates, a law firm with many years of experience in commercial and civil law, dedicated to trust funds.
Our office is one of the first to have established a major trust fund, in cooperation with a leading notary´s office. In this context, we gained valuable experience in fund law including the specifics of creating statutes and founding documents.
A trust fund is purposefully dedicated property without legal subjectivity – property “without an owner” – used for a specified purpose, either private or public.
This establishes separate ownership, where the original owner does not have ownership rights to the property. Instead, these rights are held/carried by a so-called trustee, who is not the owner of the property in the fund, but is obliged to look after, increase, and ensure it is used for its intended purpose and respect the rights of fund beneficiaries. The trustee has full administration of dedicated fund assets. Beneficiaries have the right to receive payment from the fund, and may also supervise the activities of the trustee.
A fund established for public benefit must be used solely to achieve the common good, while the trustee must be a person of probity and the founder’s property must come from honest sources.
A fund for a private purpose may be established for the benefit of a specific person or in their memory, and it may also be used for investment purposes to generate profit. The profit is then divided among the persons designated in the statute.
Trust funds are similar to endowment funds, however they differ in a lack of legal subjectivity, greater variability of their intended purpose, an absence of public supervision over their actions and the possibility of only being temporary.