The Trust Law origin
The Trust is a specific body of Anglo-Saxon origin, set up under common law and regulated by the Hague Convention of 1985.
The Trust has two main purposes and can be used indiscriminately by individuals and companies. The first aim is to protect the privacy of family assets, the protection of assets, the protection of minors and persons with disabilities, the protection of heritage for inheritance purposes and charity. The second main purpose is the protection of creditors in cases of companies in crisis.
The establishment of the equity fund in Trust Law
There are three main subjects involved in the Trust: the Trustee, who has the task of administering the assets of the trust, the Settlor, i.e. the one who has stripped of his assets to merge them into the trust and the Beneficiary, the one to whom the benefits of the fund are intended. Sometimes a fourth subject can be established, the Protector, or the guardian of heritage.
The law provides that the Settlor is stripped of its assets to merge them into the trust fund giving the Trustee the power to administer the assets for the benefit of another person. However, the Trustee will limit himself to administering the assets and will never be able to dispose of them freely.
The assets of the assets are therefore separated from the assets of the Settlor and the Trustee. The main benefit is therefore the segregation of assets that can not in any way be attacked by the personal creditors of the Settlor, the administrator and the beneficiary. The assets will also never be able to become part of the active mass of bankruptcy.
We know why it is so important to protect assets and grow carefree and this is the reason we deal with Trust Law.
The foreign law will be applied to the balance sheet according to Settlor’s choice, since there is no legislation in the Italian legal system that regulates this institution.The Trust is therefore a useful tool for the protection of large and small assetsand for the management of the business crisis