Open a Trust in Russia
Open a Trust in RussiaUpdated on Saturday 15th December 2018
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Russia has had a law regulating the establishment of trusts since 2000, however it was not until 2015 when the government has provided for the creation of irrevocable trusts. This measure was taken in order to allow local wealthy individuals to settle trusts in Russia instead of choosing offshore jurisdictions for the creation of such entities.
The trust is one of the best ways of protecting one’s assets, which is why establishing a Russian trust is a good estate planning solution. Our lawyers in Russia can offer information on the legislation covering the creation of trusts.
The Trustee Act in Russia
The Trustee Act is the main law governing the establishment of trusts in Russia. It was enabled in 2000 when it was part of the Civil Law, however in 2015 it became a law itself. The changes brought to the Trustee Law include the possibility of transferring a property or other assets to a managing company which will administer them for the benefit of a third party. Other laws providing for the creation of Russian trusts are the Contract Law and the Tax Code.
According to the law, a trust will imply three parties:
- - the settlor – the individual creating the trust;
- - the trustee – the company or other person in charge with the administration of the estate;
- - the beneficiary – the party for which the trust was created.
The Russian law also allows the settlor to be the beneficiary of the trust. Creating a trust in Russia implies several obligations for the trustee. Among these, the duty of care is the most important one. Our attorneys in Russia can explain what these obligations are.
The trust agreement in Russia
The main document related to opening a trust in Russia is the trust agreement or the deed of trust. This is a contract signed by the settlor and the trustee. The trust agreement must be signed before a public notary who will also certify the document.
Trusts are usually established for a definite period of time; however, the Russian legislation does not provide such timeframe at this moment.
For full information on the taxation of trusts in Russia, do not hesitate to contact our local lawyers. Our Russian attorneys can also assist with the opening of a trust in this country.