Disposal of trust fund assets

The trustee has the full right to administer trust fund assets. This means that the trustee may administer and dispose of such assets without restrictions. The statute may, however, restrict the disposition of trust fund assets, e.g. by specifying that real estate property may only be transferred for the price stipulated by expert appraisal or based on the consent of the founder / beneficiaries.

In principle, the founder can make the payment of funds from the trust fund subject to any conditions in the statute. For example, a father may specify that his son, for whose support the fund was established, will only receive money on graduation from university or on taking up certain employment.

If the trustee’s actions negatively impact the trust fund, the founder, beneficiaries, or other persons with a legal interest in the fund, may appeal to invalidate such actions.