Being the trustee of a trust fund naturally carries certain responsibilities and risks. You should considered that as a trustee, you will be responsible for what happens to the assets in a trust fund. If you breach the obligation of due care in the management of the fund, do not manage assets properly, or you spend the resources from the fund yourself, you can be sued by the founder or beneficiaries. Continue reading “What are the risks of the duties of a trustee?”
No, it can’t; property allocated to a trust fund does not belong to you and is part of the trust fund managed by the trustee. This property has no owner, only an administrator; only the beneficiaries have the right to payment from a trust fund. Property in a trust fund is therefore completely untouchable by execution or insolvency, and so the establishment of a trust fund is appropriate to protect against such risks. Continue reading “If execution proceedings are initiated against me, can it affect the property in a trust fund?”
No. Czech legislation includes several instruments which enable supervision of the trustee through so-called supervision of the administration of the trust fund. According to the law, supervision is conducted by the founder of the trust fund, the beneficiaries and any other persons specified in the statute. The law also specifies what happens if there is no beneficiary or a beneficiary has not been designated. In this case, the founder appoints a person with the right to supervise the administration of the trust fund, and if he/she does not do so, then the court.
However, it is appropriate and essential to define the limits of supervision in the statute of the trust fund and specify the rights and obligations of the parties with the right of supervision.
Under Czech law, the founder can also be the trustee of his/her trust fund, but he/she cannot be the sole trustee. Therefore, if you want to be the trustee of your trust fund, it will be essential to have another co-trustee, who is neither the founder nor a beneficiary of the trust fund.