Why use the Private Ancillary Funds to protect the assets, this allows us to concretely implement a “futuristic” program overcoming the limitations, now obsolete (because the world and social life and relationships change and evolve with speed) that our internal static law and it is not very malleable.
The AskRIGHT purposes of a Private Ancillary Funds (in addition to use to obtain tax advantages) :
• Protection of assets : the trust is often established to protect immovable property; for it is not infrequent the use of the term “asset protection“. One of the most appreciated characteristics of the trust is in fact the segregation of the assets conferred so that it will be insensitive to any prejudicial event that personally involves one or more subjects involved in the trust. For this very useful feature, trust is increasingly used to separate and protect personal assets from the company or to protect all those subjects whose assets may be compromised by risky professional activities (doctors, lawyers, officials, etc.) or, simply by reckless personal behavior (gambling, use of drugs and alcohol, etc.).
• Confidentiality : the provisions contained in the trust can be reserved, and this can be a sufficient reason for its creation; confidentiality refers mainly to the so-called trust. ‘opaque’ (in Italy penalized by tax legislation), where the trust can represent an excellent instrument of control of institutions and companies (normally it is used abroad in fiscal engineering activities).
• Protection of minors and of disabled people : often, as seen, the testamentary dispositions provide that minors have a limited enjoyment of the assets until the age of majority or that people with disabilities can enjoy the trust property without being full owners;
• Heritage protection for inheritance purposes : frequently a trust is established for the purpose of protecting a heritage in the generational changeover or from the waste by persons incapable of administering it, dedicated to gaming or suffering from excessive prodigality;
We therefore resort to the Private Ancillary Funds for the protection of assets / confidentiality / heritage protection for inheritance purposes and for the protection of minors and the disabled / beneficiaries / forms of investment and retirement / tax benefits / protection of family situations or non-de facto couples protected in the Italian legal system.
The peculiarity of the institution lies in the splitting of the concept of ownership, typical of countries of common law: the legal ownership of the trust, attributed to the trustee, makes it the sole owner of the related rights (albeit in the interest of the beneficiaries or for the pursuit of the defined purpose), although the assets remain segregated in the assets of the trust and become alien, therefore, to the assets of both the settler and the personal trustee.
Another reason that can induce a person to resort to the trust is the protection of the estate for inheritance purposes : frequently a trust is established for the purpose of protecting a heritage in the generational transition or squandering by persons unable to administer it, dedicated to the game or suffering from excessive prodigality.
AskRight believes the purposes of the Private Ancillary Funds can be the establishment of forms of investments and pension schemes: pension investment plans and mutual funds derive from the Anglo-Saxon trust funds.
The establishment of a trust in certain cases may give rise to a ” tax advantage ” but if that purpose has been the sole or principal reason that has led the entity to establish a trust, it can be considered illegitimate and therefore revoked and subject to sanction.