Establishment of a Trust in IrelandA trust is the act by which a person transfers to another person ownership of certain assets with a mandate to manage them in the interest of one or more beneficiaries. The beneficiary may be the settlor of the trust (self-declared trust) and a third party may be appointed to supervise the trust operations.
Trust: when is it established?The establishment of a trust in Ireland may be for different purposes, e.g.:
- generational change;
- privacy protection;
- asset segregation;
- asset protection;
The Italian legal system does not have a law on trusts but acknowledges trusts established in Italy in accordance with Irish law, having ratified the ‘Convention on the Law Applicable to Trusts and on their Recognition’ signed at The Hague on 1 July 1985 (Italian Law 16 October 1989 No 364).
The main types of trusts in Ireland
Real estate investment trustA real estate investment trust consists of conferring one or more real estate assets to a trustee, who shall manage them in compliance with the settlor’s will.
This type of trust is very useful to protect one’s own assets from aggressive initiatives of creditors or to manage any subdivisions of real estate assets in the event of inheritance.
Corporate trustA corporate trust, as its name implies, requires the settlor to transfer corporate shares to a trust. This operation is very effective with regard to the protection of one’s own assets as the shares may be attacked only by members of the trust, not by creditors of the settlor. A corporate trust may be also used in cases of generational change within companies.
This type of trust consists of transferring to a trust money, real estate and other assets in order to create a completely self-standing set of assets. The management of these assets shall follow under warranty the goals and objectives set by the settlor and shall be unassailable by the creditors.
A warranty trust is valid not only for individuals but also for companies.
Family trust and trust for disabled people
A family trust provides for the transfer to the trust of cash, real estate and other assets in the event that it is necessary to govern situations such as kinships, relationships between cohabitees, marriage crises, inheritance,...
Instead, trusts for disabled people are set up for the exercise of judicial curatorship.
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