About the Trust

About the Trust

Here is the interesting interview given by Dr. Luca del Federico about the Trust.

Why the establishment of a trust for the generational transfer of movable and real estate assets?

“We are convinced of the enormous potential that this institution has, both in furniture and real estate. In fact we believe that the trust until now has not had among the operators the hoped diffusion, above all because of the reserved tax treatment.”

But what can be the advantages of setting up a trust for the generational transition?

“The advantages are many. First of all there is the possibility to pass on control of the company to the trustee (for example, the trusted professional), who will choose the one among the heirs who will be most suitable to manage the company at a future historical moment thus avoiding conflicts between the heirs. Then you will protect the company’s assets from possible attacks by creditors because in fact this will be the trust’s. Finally, it can also be used to reorganize the company with different and more current criteria.”

As regards the conflict between heirs: why should the owner of a company set up a trust for the generational transfer of family property?

“Because, if, for example, there was no agreement between the heirs, the business complex would have to be divided between them bringing absurdly to the end of the company. If instead the owner of the business complex constitutes a trust, the assets will remain unitary and the trust will decide who will be the director of the company, thus protecting the family assets.”

By what law will the trust be governed?

“At present the Hague Convention on the recognition of trusts allows an Italian citizen to establish a trust governed by any foreign law that specifically regulates the trust.”