Hungary: Estate planning in Hungary: private foundation or trust?

by Ákos  Menyhei Dr. Ákos Menyhei

In 2014, the new Civil Code entered into force in Hungary, providing local legal tools for estate planning. It provides for the option to establish both private foundations and trusts. The Trustees Act as additional legislation provides auxiliary rules creating a protected and tax-neutral environment for the implementation of the trust concept into Hungarian civil law. The author depicts the limited activity of the private foundation and explains the most important rules concerning the trust, including its taxation and administration. In particular, the article describes some of the main differences between trusts and private foundations.

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