Definition of Trust

The trust is a legal entity, governed by a non-Italian law, recognized under the Hague Convention on the Law Applicable to Trusts and on their Recognition (or Hague Trust Convention) of July 1st 1985, that entered into force in Italy on January 1^st 1992.
The trust is created -inter vivos or on death- by the settlor (an individual, a legal person or a legal entity), when assets (real estate, shares, bonds, money, works of art or other assets) have been placed under the control of a trustee. The trustee manages, employs and disposes the assets for the benefit of a beneficiary or a specified purpose.

The trustee has the power and the duty, in respect of which he is accountable, to manage, employ or dispose of the assets in accordance with the term of the trust and the special duties imposed upon him by law. These assets do not become part of the trustee’s property, but constitute the trust fund for the realization of the specific purpose. The trustee is also evaluated on the ability to fulfill the objectives of the settlor.
The settlor may appoint immediately or subsequently a third party, the protector, who has legitimate functions of veto against the trustee; usually the protector has the power to remove the trustee and appoint another one.

To sum up, the trust is a flexible legal entity that expresses its greatest utility when the current legal instruments required by the Italian law are not able to solve efficiently the problem raised by the clients.