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A Trust is a legal instrument is based on the principles of trust, through which the founder of the Trust Fund (the settlor) allocates and transfers certain assets to the management of another person (the trustee) for either a private or public purpose and, where appropriate, for subsequent transfer to a third person (the beneficiary).

The establishment of a Trust creates a separate and independent ownership of the fund assets.

Trusts are mainly used by families to protect themselves from future risk.

A prudent entrepreneur wants to eliminate financial risks to protect the future financial wellbeing of his family. Before extending his previously successful business activities he would like to ensure the financial security of his two small children and his wife in the event that in his new business venture does not do well. Therefore, he creates a trust into which he transfers the family house, something he has previously purchased, and also a certain amount of other personal assets. He designates his wife as the trustee of the trust, who will ensure the running of the household and dealing with the day to day bills. At the same time, she will administer and, by being prudent with the investments, would ensure that the value of the trust investments appreciate over time to provide funds dedicated to cover the cost of the childrens’ studies. The entrepreneur (as founder of the trust) dictates further that the remaining balance of the fund, after the costs of study, is paid out to the children on the date of their successful graduation from university.*

* This example is just one of the many ways a trust operates but illustrates the basic structure and function of the instrument.

  • The administration, protection, transfer planning and continuing integrity of wealth
  • Intergenerational transfer of assets, without recourse to probate proceedings
  • Protection against unexpected events and legal risks
  • Financial security for spouses, partners and children
  • The opportunity to pass family business smoothly from one generation to the next
  • The opportunity to provide for charitable objectives in a simple, low cost way

You not have to be rich to set up a trust. We all want to secure our families’ future.

Trusts are flexible, and can be used to protect your house, your business, your investment portfolio or any other significant assets.

  • People who want to preserve and protect their assets
  • Budding entrepreneurs who want to protect the assets they have before starting a new business
  • Entrepreneurs who want to step back from the day to day running of the business, while ensuring proper controls are in place or to ensure smooth management succession
  • Unmarried couples who wish to secure assets for their partners or children
  • Those with large or more complicated families that don’t want their assets broken up upon death and to secure them for future generations
  • Those who want to prevent conflicts over family or business assets

A Trust can be set up anytime.

The creation of the conditions and rules under which the trust will operate is a complex process the results of which have to stand for many years (or generations). It is imperative that these documents are drawn up by an experienced professional. It is also crucial to ensure the right person is chosen as administrator of the trust (trustee).

Any APRSF member will be able to talk you through this process. It is not really that complicated.

Please be careful if you are considering using the services of someone who is not an APRSF Member as trusts prepared without the proper knowledge and experience can cause significant problems and may even fail to achieve your objectives.

Trusts can be traced back to the days of ancient Rome, where they were widely used as a tool for transferring property upon death. In the Middle Ages in England, trusts date back to the time of the Magna Carta, when knights needed to secure the management of ancestral property and its transition to future generations.

Nowadays, trusts are associated with empires such as those created by the Rockefellers or the Rothschilds. The purpose of these sophisticated structures is the effective management, administration and protection of wealth in order to maintain its integrity during transfer to future generations.

Now trusts are a part of Czech law and anyone that has assets to protect can enjoy the benefits of a trust.