Within the Common Law Legal Systems, a trustee is the person (or the business organization) who holds property for the benefit of the beneficiary of the trust.
Trustees will therefore have to manage the money or assets within the trust for the beneficiary’s best interest and according to what is provided within the declaration of trust.
For example, if the trust is set up to benefit settlor’s young children, the trustee will use the trust fund for the benefit of any one of the children as it is provided within the declaration of trust: like paying for a school trip.
The trust idea has not always been part of the Italian legal system, as it derives from Equity Courts.
However, after the ratification of the Convention of 1 July 1985 on the Law Applicable to Trusts and on their Recognition provided by Italy in October of 1989 (statute law n.364/1989), it is undoubtedly that an Italian trustee can lawfully operate in italy and administer trust assets.
Article 2 of said convention in fact, provides that: “... c) 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 terms of the trust and the special duties imposed upon him by law”.
A trust can have various connections with Italy:
Assets located in Italy;
An Italian beneficiary;
Shares of an Italian company held in trust.
However, it must be considered that Italy has not yet provided any organic piece of law relating to trust exept for its tax aspects.
This means that every aspect of the trust administration is left to experts and courts.
In these cases, an Italian trustee is going to be the best solution for the correct and efficient administration of the assets.
We are aware that an international trust will be regulated by a foreign law (i.e. English Trusts Law, Trusts (Jersey) Law 1984), and our team of experts has a deep knowledge of both Italian and Trust Law.
We are therefore able to act as it is required by the law regulating the trust and, at the same time, to deal with every aspect of the trust administration in Italy.
We have been acting as trustee for 15 years and we are ready to help you.