Trust Law
The well-trained staff of our office provides legal advice in the framework of the European Law and in particular we provide consulting services to companies in the field of the European internal market, on issues such as standardization, free circulation of goods and free circulation of services and employees and the right of establishment, the obligations and the rights of traders and consumers in the context of cross-border transactions and in particular with the purpose of the transaction to be digital content.
This particular branch of law, which shapes and influences almost all the national laws of the Member States of the Union, is our main and greatest weapon for the safe organization and development of the companies which trust us.
When a person retains property for another without considering his or her own interests, the relationship is referred to as a trust. The traditional English definition is as follows: “…a person in whom property is vested (called “the trustee”) is compelled in equity to hold the property for the benefit of another person (called the “beneficiary”), or for some legally enforceable purposes other than his own.” Snell’s Equity, 32nd edition, p. 623. A trust is a fundamentally adaptable organisation that may be changed to meet the needs of the people who want to establish one.
Benefits of a Cyprus trust
Cyprus trusts provide the following advantages, among others:
- Confidentiality (as far as permitted by anti-money laundering rules).
- Benefits from taxes for both the settlor and the beneficiaries.
- Asset protection, such as defense against debtors or compelled heirship laws
- Flexibility when employed as a vehicle for a specific purpose.
- Low costs compared to running a business or administering estates.
There are no need to create or submit any reports or audited accounts.
How am I safeguarded against the Trustee?
The beneficiaries of a Cyprus trust are recognized by the law as the rightful owners of the trust’s assets. The trustee essentially holds or manages the trust property for their benefit and is not permitted to receive any advantage unless specifically permitted by the trust deed or the beneficiaries. Trustees who object to being compensated in their capacity as trustees do not have the right to do so because the duties of the position are so burdensome.
By exacting very rigorous requirements and frequently being harsh to the trustee, the law safeguards the beneficiaries (and, of course, the agreement between the Settlor and Trustee). The so-called fiduciary obligations of trustees are loyalty-based obligations that forbid them from pursuing any illegal profits or simply putting themselves in a position where they might be in conflict. If the Trustee receives benefits from the Trust property, he may be subject to criminal as well as civil penalties. In other words, he will not only be required to account for any profits made but also risk being imprisoned.
A trust must be upheld in order to exist, and the Court will always enforce the essential obligations of the trustee, the disclosure of particular facts to the protector or beneficiary, and the restrictions on exemptions for breaches of trust.