Wealth Management

Hungarian Asset Management Foundation – a contemporary solution for family offices

We are proud to announce the publication of Dr Ákos Menyhei’s new article in Trusts & Trustees, titled “Hungarian Asset Management Foundation – a contemporary solution for Family Offices”. This publication marks Dr. Menyhei’s 11th consecutive contribution to the journal, an achievement that highlights his continued thought leadership in the field of private wealth structuring.

In an increasingly complex global regulatory environment, Hungary’s AMF represents a compelling, future-proof solution for high-net-worth families and their advisors. As jurisdictions around the world place growing pressure on traditional wealth structures, the AMF offers a new model that prioritizes both compliance and confidentiality.

Hungarian Private Foundations: a strategic tool for HNW families

This article explores the comparative advantages of Hungarian Private Foundations, focusing on the innovative Asset Management Foundation (AMF).

Hungary’s flexible regulatory framework and secure asset management practices have attracted global attention, as demonstrated in the case of Mr. Lee, a Chinese businessman who consolidated his wealth through a Hungarian family office.

Avoiding Offshore Pitfalls: How Hungary Balances Privacy and Regulatory Compliance

The increasing global regulatory scrutiny, driven by initiatives like the OECD’s Common Reporting Standard (CRS) and the EU’s Anti-Money Laundering Directives (AMLD), is reshaping the landscape for asset protection.
Traditional offshore havens are becoming less viable for High-Net-Worth Individuals (HNWIs) from regions like Southeast Asia and the US, who now seek jurisdictions that balance robust asset protection with regulatory compliance. Hungary offers a compelling solution by providing strong asset security while adhering to strict EU regulatory standards. Its unique framework ensures both privacy and compliance, making it an attractive choice for safeguarding sensitive financial and business information.

Unlocking Wealth—a guide to maximizing benefits with Hungarian Asset Management Foundations (AMFs) for single-family offices

We are excited to announce the publication of an insightful new article in Trusts & Trustees by dr Ákos Menyhei, managing partner of Primus-Wealth.

Hungarian Asset Management Foundations (AMFs) are unique legal entities for wealth management, blending trust principles with foundation flexibility. This article examines AMFs’ evolution and significance in Hungary, highlighting their role in wealth preservation, asset protection, and estate planning for single-family offices. AMFs offer a sophisticated platform for asset management, with founders retaining substantial control. They provide robust asset protection by separating and shielding assets from creditor claims, ensuring privacy and security. Additionally, AMFs are adaptable, allowing dynamic adjustments in management strategies and governance, while offering tax efficiency, making them ideal for preserving and growing family wealth across generations.

all-weather

Reputation Management is Also Important for the Rich, Not Just the Famous

With considerable responsibilities related to the management of their affairs, high net-worth individuals (HNWIs) often have a lot at stake, both personally and professionally. Their reputation and public image can have a significant impact on their success, relationships, and future opportunities.
As the media landscape continues to evolve and attitudes about which behaviors are publicly acceptable dramatically shift, the importance of reputation management in maintaining the positive reputation of a HNWI and protecting their personal and professional interests is becoming increasingly apparent.

Family Facilitation Fundamental to Multi-Generational Wealth Management

As wealth transitions from one generation to the next, families encounter a myriad of challenges beyond conventional wealth management practices. In our latest article, we delve into the complex world of multi-generational wealth management, where balancing the aspirations of future heirs with the preservation of assets and tax efficiency demands a sophisticated approach. Discover how our team of experts in legal, financial, and tax matters can guide families through this complex terrain, ensuring a prosperous legacy for generations to come.

Estate Planning is the Best Dispute Resolution Strategy

There are many reasons why anyone should consider estate planning. One of the primary reasons is to ensure that their assets are distributed according to their wishes after they pass away. However, there is another important role that thorough estate planning can play that is often overlooked: a well-drafted estate plan can help to avoid time-consuming, costly disputes among family members by clearly identifying who the beneficiaries are and what they are entitled to.

Taxation of the Hungarian asset management foundation, trust, and hybrid trust

We are delighted to announce the publication of Dr. Akos Menyhei’s latest article in Trusts&Trustees.

How should new legal forms—trusts, asset management foundations and hybrid trusts—be treated and their taxation implemented into an existing tax regime? Is tax exemption the best way forward or should the new legal forms be included in the tax regime that applies to taxable entities? Who should be taxed and when? The legal instrument itself, the trustee or the beneficiary? Should a look-through approach be applied to provide for tax-neutral treatment of the new vehicles? In this article, Dr Menyhei explains the key issues and significant benefits of the taxation of trusts, AMFs and hybrid trusts, providing answers to these questions.

The Importance of Estate Planning: Protecting Your Assets, Providing for Your Loved Ones and Minimizing Taxes

Having a comprehensive estate plan can protect assets from potential creditors or legal battles, can minimize taxes and expenses associated with the transfer of assets to heirs or beneficiaries, as well as providing peace of mind for you and your family. Our article discusses the importance and benefits of creating an estate plan that reflects your values and wishes.

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).

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.

Preparing 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.

A 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).

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.

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).