Get prepared and secure the future of your children or grandchildren today
Starting a family and having children is a joyful time for everyone, but is also a period full of uncertainties, questions, and new responsibilities. There are some questions in our lives most of us want to avoid or delay but preparing for the future and securing our children’s or grandchildren’s future should not be one of them.
In this article we are going to talk about the practical solutions that can help you to take care of your children or grandchildren’s future by providing them with support even when you may no longer be with them, so they could have the secure future you would want for them.
Chambers & Partners has ranked our managing partners Dr Ákos Menyhei and Dr Gábor B. Szabó as first-rate HNW advisors (Leader in his field) in 2022 again
We are pleased to announce that Chambers & Partners has ranked our managing partners dr. Ákos Menyhei for the sixth consecutive year and dr. Gábor B. Szabó for the fourth consecutive year as first-rate HNW advisors (Leader in his field).
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Gift tax free distribution from trust to German beneficiaries
Until now, the German civil law system has been extremely repulsive towards the institution of the trust, and the trust sourced income has been weighed not only by personal income tax but also by gift tax. However, a federal court judgment in June 2022 ruled that income from foreign trusts is not subject to gift tax if (a) the transfer of assets is in accordance with the deed of trust and (b) the beneficiary has no title to the release of assets during the term of the trust, ie. cannot be considered to so called “interim beneficiary”.
As the two conditions can be easily ensured based on the rules of the Hungarian “fiduciary asset management contract” (re: trust like arrangement), the new court decision may also open the way for German tax residents to use Hungarian trusts. The extreme similarity of the two civil law systems presumably simplifies the understanding and adaptation of the institution in the German legal environment as well.
The impacts of the beneficial owner register on asset management foundations, trusts and hybrid trusts
It is with great pride that we share with you the new article of Dr Ákos Menyhei, that was published in the latest issue of Trusts & Trustees.
The EU beneficial ownership register regime forces among other companies, trusts, and foundations to make publicly available their beneficial owners, even though, the definition of beneficial owner is alien in many continental jurisdictions due to the Roman Law heritage in the civil law. This article discusses the working mechanism of the Beneficial Ownership Register (BOR) in Hungary with a special focus on the asset management foundation (AMF), the trust and the hybrid trust. It also analyzes the impact of BOR and AML law on the privacy of the participants in an AMF, trust, or hybrid trust.
What is privacy, why should HNWIs care about it and what is the most effective solution?
Privacy is a fundamental human right, one of the pillars of the human integrity. It is essential for individuals to operate and thrive without fear of scrutiny or reprisal. Information is power, and the more information others have, the more potential they have to wield power over you.
Learn MorePreparing for new FATF regulations affecting trusts
Money laundering and terrorism financing are monitored by the Financial Action Task Force (FATF). Through its work, it helps member countries to fight money laundering and terrorist financing more comprehensively and with the most modern tools. It is currently working on a recommendation document to add new elements to the transparency obligations of companies and trusts. In this article, we explore these new guidelines in detail.
Learn MoreA Comprehensive Guide to the Qualified Foreign Institutional Investor (QFII) program
China is the world’s largest exporter and one of the world’s largest economies. With access to a huge market, both in real and financial terms, foreign investors can gradually enter at a pace and scale determined by Chinese regulators. One of these opportunities is China’s Qualified Foreign Institutional Investor (QFII) program, launched in 2002 to allow foreign institutional investors direct access to share trading on Chinese exchanges using renminbi (RMB).
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Changing US tax laws require changing wealth management strategies
A new US tax reform has been specifically addressed by the White House, and other US Senators have also introduced legislation that would affect the wealthy and highest earners in the United States. In light of these proposals, those who could be affected by them should be prepared to plan ahead by learning about the benefits of EU trusts and Hybrid trusts registered in Hungary.
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What can be more heavenly than an offshore tax haven?
Usually, when a domestic tax situation becomes too overbearing, many high net worth individuals (HNWIs) would consider safeguarding their wealth and assets somewhere more amenable to their needs. Traditionally, this alternative location might take the form of an offshore tax haven, such as the British Isle of Jersey, or the British Virgin Islands. However, a proliferating global transparency regime has made it increasingly difficult to adopt these means in a more confidential manner, with greater regulatory enforcement including the Register of Beneficial Ownership (RBO), the Common Reporting Standard (CRS), and the Foreign Account Tax Compliance Act (FATCA).
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