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Funds as a tool for effective asset protection and management
Funds as a tool for effective asset protection and management
Properly structured asset protection is one of the key elements of successful business operations as well as personal financial planning. One of the most effective forms of protection is the use of funds / trusts - legal instruments that allow for the management and safeguarding of assets to ensure stability, inheritance, and ownership anonymity.
Interestingly, even a symbol of sporting prestige like the Stanley Cup came into existence thanks to a fund. In 1892, Lord Stanley donated funds to create a trophy for the best hockey team - and entrusted a fund with managing this gift to ensure that the tradition and value of the cup would be preserved for future generations. Similarly, today, funds are used to protect and manage valuable assets over the long term.
The most common choices among Slovaks include the Czech endowment fund, the Czech trust fund, and the Liechtenstein Stiftung.
Interestingly, even a symbol of sporting prestige like the Stanley Cup came into existence thanks to a fund. In 1892, Lord Stanley donated funds to create a trophy for the best hockey team - and entrusted a fund with managing this gift to ensure that the tradition and value of the cup would be preserved for future generations. Similarly, today, funds are used to protect and manage valuable assets over the long term.
Funds / trusts are legal tools that allow assets to be managed in pursuit of various goals, whether personal or family-related. These instruments offer flexibility and asset protection while enabling effective inheritance planning and financial stability.
The most common choices among Slovaks include the Czech endowment fund, the Czech trust fund, and the Liechtenstein Stiftung.
- ENDOWMENT FUND - Inspired by private foundations in German-speaking countries, its main purpose is to manage assets for a specific, predefined goal, which can be either public-benefit or private.
- TRUST FUND - Based on the tradition of Anglo-Saxon trusts, this fund allows the founder to set aside assets that are managed by a trustee for the benefit of beneficiaries. Its main advantages include flexibility and the ability to protect assets from third-party claims.
- LIECHTENSTEIN STIFTUNG - One of its main advantages is the high level of asset protection against claims from heirs and creditors. It benefits from a stable legal environment and a long-standing tradition in the legal system.
Choosing the right type of fund depends on your unique objectives and circumstances. If you're looking for a tailored solution to protect and manage your assets effectively, our experienced team is here to help.