Asset Management – Generational Asset Transfer

Further details about this service

The issue of generational change affecting businesses has most emphatically called for the institution of trust management to be revived. In the case of family businesses operating in the form of SMEs, the problem is primarily what will happen to the company in the event of the owner – who is usually also the executive officer – leaving. Inheritance formally provides a solution to this, but rather slowly and with almost no flexibility. The death of the owner or manager often causes the fragmentation or destruction of assets, which is not in the interest of the settlor and the trustee, nor of the national economy.

This does not necessarily have to be the case. A responsible business owner does not have to entrust the business s/he has built and operated exclusively to the tools of inheritance law. Today – with expert assistance – the legal institution of trust management or the asset management foundation can also provide an appropriate solution for asset planning.

We can provide the following services in the field of trust asset management:

the range of beneficiaries may have different distribution options in time or in proportions,
the possibility of suspending or withdrawing the benefit,
overriding inheritance law rules, as it is much more flexible and faster than those,
handling the problem of family assets under different jurisdictions.
We can provide the following services in relation to trust management:
Advice related to trust management contracts:
From 150,000 HUF + VAT
Preparation of a trust management agreement:
From 500,000 HUF + VAT

What our clients can count on us for:

wealth planning,
preparation and modification of trust management contracts,
care for minor beneficiaries who are incapacitated or do not have an independent income,
if the executor has children from multiple relationships,
planned and managed transfer of the family business.

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Frequently
asked questions
and answers

This new legal institution is worth “taking a peek.”

What does trust management mean?

Trust management is a legal institution that has existed for a long time and has recently been reintroduced into Hungarian law. Basically, it is a legal institution that provides a much more flexible and, in quite a few cases, more favorable framework from a tax perspective for managing a wealth of assets.

How is trust management established?

The managed assets are transferred by the settlor (owner) to the trustee through a trust agreement, who then manages them for the benefit of the beneficiary(/ies).

What is trust management good for?

The benefits and possibilities of trust management are enormous. This is perhaps the most advantageous option for flexible and long-term management of assets or their disposal.

What can the trustee do with the assets under management?

The trustee is entitled to manage the assets within the framework provided by the trust agreement. The trustee’s fee is a matter of agreement.

What are the costs of preparing a trust agreement and trust management?

The answer to this question is influenced by a number of variables; primarily, by the size of the assets under management and the degree of complexity of the contract.

What if I want to take care of my heirs, but I do not want them to get everything at once in the event of my death?

A trust is a great alternative to provisions in the event of death, as it provides the testator with much greater freedom of action than a will does.

Is it worth it for me to choose trust management?

It is not certain that trust management is the best solution for asset management, but it is definitely worth considering, precisely because of the numerous advantages it provides.

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