What trust management is

Trust asset management is a global practice of joint ownership and use of both tangible and intangible assets.

Assuming the responsibility for registration, recording and re-registration of property rights, the official bodies in most of the states recognize the owner as a single person, either legal or physical, and register absolute rights to property or part of it.The individuals appeal for the trust management in the situations when it’s necessary to distribute rights between co-owners more delicately, that is, in particular, to establish and control the rules for the use, ownership and disposal of property, cash deposits, securities, shares in companies and any other assets of both legal entities and individuals that are accounted for and recognized by state bodies.

It is impossible to quantify the value of all assets in the world under trust management. According to various estimates, only Northern Europe and the UK account for more than two trillion euros of assets in trust management.

The laws of all Western countries have a centuries-old practice of recognizing “collective” or “indirect” property rights.This system thrives from the medieval Europe with its extensive expansions due to the numerous colonies and the acquisition of new solid assets around the world.

Later it became a common legal practice to separate the property rights to the rights for the use, the rights for the ownership and the rights for the disposal.They appeared the laws and legal mechanisms of appointment and alteration of such rights. It was worked out a wide court practice of the precedents that led to improvements in laws and related mechanisms.They act all over the world tens of thousands of public trustees, and the number of trust structures organized by the closed groups of persons for solution of their local tasks cannot be counted but their number is likely to exceed one million.

Nowadays trust management is widely used by businessmen as a means for attraction of more potential clients, for example, when arranging the sales of the rights to use luxury apartments or villas (fraction ownership), and is also used by the physical bodies to ensure inheritance rights, to meet the requirements of the legislation to governmental officials and even to optimize taxation. Summarizing the above, any movable and immovable property, securities and liquid assets can be placed under trust management.

Relatively high cost of the organization and maintenance of the trust management scheme is compensated by flexible tools of fine-tuning and distribution of any rights for such property among co-owners. Due to trust management, high number of the new opportunities available to the average consumer around the world.



 The trust has granted me an opportunity to sleep safe and calm

The word ‘trust’ means ‘confidence’. What is the difference between the notions of ‘belief’ and ‘confidence’? A person can believe blindly, but confidence is a belief supported by actions and deeds. At first glance, a trust is very similar to a normal contract of assignment: one person authorizes another to manage his/ her property in one way or another. However, the similarity is purely external. The peculiarity of the trust is that the thing that is transferred to the management, irrevocably becomes the property of the manager. I can give an example of the situation where the trust is used. An old millionaire retires because he is no longer able to manage his entire fortune. He wants his sons to continue his work, but he does not want to simply give his sons large sums of money, apprehending that young people could squander them. Thus, our millionaire finds a reliable lawyer and concludes a trust agreement with him. Under this contract, the lawyer receives the state of a millionaire (trust founder) in his management. The lawyer undertakes to manage the fortune only and exclusively in the interests of the sons of a millionaire. He (the lawyer) has to finance their education, cover their expenses to set up their own business, etc. At the same time, the trust contract strictly prohibits the lawyer to pay from the allocated fortune for the expenses that would be unreasonable use of money in the opinion of the father (bets on races, excessive restaurant expenses, etc.). The founder of the trust may appoint a fixed annual rewarding for the performed work to the lawyer (Trustee) himself from the amount of the transferred property. Global Actual Services is the personal lawyer of each of us, the members of the club Alliance, that will monitor and guarantee the observance of our rights in any situation having taken control of our possession.

Dmitriy Levitskiy (Ukraine)
Private lawyer