Establishment of a trust in the United KingdomA ‘Trust’ is the act by which a person (the ‘Settlor’) transfers to another person (the ‘Trustee’) ownership of certain assets (e.g., shares, real estate, bank accounts, etc.) with a mandate to manage them in the interest of one or more beneficiaries, possibly under the supervision of a third party (‘Protector’). The beneficiary may also be the settlor: in this case reference is to a ‘self-declared trust’.
A trust may be established be for different purposes, e.g.:
- asset protection;
- privacy protection;
- asset segregation;
- generational change;
The Italian legal system does not have a law on trusts, but acknowledges trusts established in Italy in accordance with foreign law (e.g., English law), having ratified the ‘Convention on the Law Applicable to Trusts and on their Recognition’ signed at The Hague on 1 July 1985 (ratified by Italy by Italian Law 16 October 1989 No 364).
The following are the main types of trust:
Real estate investment trust
It consists of the conferral to the trust of one or more real estate assets. In principle, no creditors of the settlor may attack the assets bestowed in trust.
The real estate investment trust may be a useful tool to protect one’s own wealth, but also as an asset division with a view to inheritance.
During the term of the trust, the trustee may perform all operations for the management of the real estate assets, including undertaking the sale thereof, insofar as they are compatible with the purpose set by the settlor.
It consists of conferring to the trust shareholdings. Like the real estate investment trust, the shareholdings conferred to the trust may be only attacked by creditors of the trust itself and not by those of the settlor.
The real estate trust is a very effective tool for protecting one’s own wealth, but also for generational change in companies.
It consists of the conferral to the trust of movable and immovable assets, money or other assets, with the purpose of creating a special fund, which shall be managed for the specific purpose for which the release of the warranty was requested, and the beneficiary of the warranty certificate shall have assets that may not be attached by their own personal creditors. A warranty trust may be used by individuals or companies that wish to protect their assets from possible attacks of third parties.
Family trust and trust for disabled people
A family trust consists of the conferral to the trust of movable or immovable assets, money or other assets, with the aim of regulating inheritance, generational change, relationships between cohabitees and kinships, marriage crises, etc.
Instead, trusts for disabled people are set up for the exercise of guardianship and judicial curatorship.
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