Trust funds were introduced in 2014 by the new Civil Code (articles 1448 and following) in the Czech legal system. It is not a legal entity and can have any purpose.
The trust is created by separating the object of the trust (moveable asset or real estate, bonds, cash etc) from the property of the person establishing the trust. The person setting up the truest (founder) will entrust these separate assets, for a specific purpose to a trust administrator and this can be done by contract or by testament.
Once the trust has been set up, there will be a separate, distinct ownership. The asset, therefore, will not belong to the director or the founder, or to the beneficiary. The trust director will act on ownership rights on the assets in the name of and on behalf of the trust, thus carrying out all the public actions (e.g. registering a real estate asset) by placing the wording “trust director “.
The trust director can be any individual with the ability to act or a legal entity, and can be revoked by the founder who must indicate the modes for appointment and revocation on the articles of association.
Each trust fund must have articles of association that must be a public deed.
The fund can be adapted to various situations, bearing in mind the fact that the law guarantees anonymity for the founder.