Principle and establishment

Trust funds are established by a contract or last will, whereas the founder assigns certain property to a trustee for a certain purpose and the trustee accepts administration of the entrusted property.

The trust fund is then incorporated by entry into the trust fund register, with the exception of trust funds established by last will, which are incorporated by death of the founder and are entered into the register after the incorporation.

The trust fund register contains information on name of the trust fund, date of incorporation, purpose, number of trustees, way of their acting on behalf of the trust fund, and further identification information of the founder, beneficiaries, trustees and person entitled to supervise the trust fund.

However, the full excerpt from the trust fund register is not publicly accessible. Only the information on trust fund name, ID number, date of incorporation and termination and information on trustees are publicly available.

Information on beneficiaries, founder and person entitled to supervise the trust fund shall be accessible only to courts, executors, tax offices, police etc.

Full excerpt from the trust fund register may be also provided to a person who proves its legal interest in such information. The court administering the trust fund register, shall assess each case individually and decide whether the person has such claimed legal interest in acquisition of the information or not.

Trust funds follow a statute issued by the founder. The statute must have the form of a notarial deed. It is the basic document used to resolve/specify the most important questions related to the fund’s operation – its name, what assets it contains on its establishment, what is its purpose, how many trustees should there be and how should they act and who should receive payment from the fund – who will be the fund’s beneficiaries.

With respect to the requirement of the statute being a notarial deed, it is expected that the establishment of a trust fund will often take place at a notary public. One suitable and efficient model will be to (i) establish a trust fund via a contract and (ii) receive/obtain the fund’s statute.