The trustee can be licensed (professional) or private trustee. Their obligations to the the settlor and the beneficiaries are the same. The private trustee can be corporate body or physical person as well.
The private trustee has to approve the AML policy published by the Central Bank of Hungary, and doesn’t need to have liability insurance, bank guarantee, etc., but it can manage only one trust. The private trustee has to register the trust with the Central Bank of Hungary and this records of the FAMCs of private trustees are available for the tax authority, the police, the OLAF and the courts, etc.
Process of creation and registration of trust by private trust company
- Creation of private trust company (partnership, limited liability company or private company limited by shares)
- Drafting trust deed
- Filing of finalized trust deed along with the declarations of the trustee to Central Bank
- Reporting the creation of the trust to get tax registrations with the certificate issued by the Central Bank
- Separated bank account opening for the assets under management (if needed)
- Distribution of assets
Disadvantages of the private trust company
The affiliated companies of the trustee, the shareholders, managers, directors of the trustee and their relatives (according to the Civil Code 2013) are not able to be appointed for private trustee of other trusts and it should be certified to the Central Bank.