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Trust in legislation

Trusts were originally created under common-law principles and still are not recognised in some civil-law jurisdictions. This can create significant uncertainties as to how and when the trust assets are taxed and also as to how the distributions to the beneficiaries are treated.

Trust is not a part of legislation in civil-law post-soviet states, consequently, trusts cannot be created and governed under national legislations of these states. Nevertheless, trusts are recognised by a number of tax legislations. 

In the majority of jurisdictions trust is defined as a “non-incorporated structure". In legislation of some states such aspects as (a) tax consequences of transfer of assets to a structure; (b) how and when the assets held in a structure are taxed; and (c) how and when the distributions out of a structure are taxed if made to its beneficiaries are defined in detail.

MP Part will advise settlors and beneficiaries on trust taxation matters and other legal and tax consequences in relation to settlement, use and termination of trust.

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