Best Trusts Lawyers in Ghent

About Trusts Law in Ghent, Belgium

Trusts are legal arrangements in which property is held and managed by one party, known as a trustee, for the benefit of another party, called a beneficiary. In many countries, trusts are a common way to manage assets, protect family wealth, or plan for the future. However, Belgium, including Ghent, follows the Civil Law system and does not formally recognize the traditional Anglo-Saxon trust concept. Instead, Belgium has equivalent mechanisms, such as fiduciary structures, mandates, or special arrangements for asset management and inheritance planning. Understanding these alternatives is essential for anyone considering asset protection or succession planning in Ghent.

Why You May Need a Lawyer

People in Ghent may seek legal help regarding trusts or related arrangements for several reasons. First, anyone planning for inheritance or estate management may need guidance on how to structure their affairs using Belgian law. Second, foreigners with assets in Belgium often require professional advice to align foreign trusts with Belgian legal requirements. Third, business owners may wish to create a legal structure to manage family or corporate wealth succession. Legal advice is crucial to avoid unintended tax consequences, ensure compliance with local laws, and select the most effective mechanism under Belgian rules.

Local Laws Overview

Belgium does not recognize the classic trust found in Common Law jurisdictions, such as the United Kingdom or the United States. Instead, similar objectives are achieved through instruments like mandates (mandaat), fiduciary transfers, or specific corporate and estate structures. Belgian law, including in Ghent, places strong emphasis on forced heirship rules, meaning certain relatives must inherit a defined portion of an estate, which can restrict freedom in estate planning. Additionally, Belgian tax authorities closely scrutinize foreign trusts, often treating them as transparent or considering their assets as directly owned by the founder or beneficiaries. Proper legal structuring, compliance with tax reporting requirements, and adherence to inheritance laws are vital when considering trust-like arrangements in Belgium.

Frequently Asked Questions

What is the Belgian equivalent of a trust?

Belgium does not formally recognize trusts as understood in Anglo-Saxon law. Alternative structures, like mandates, fiduciaire agreements, or private foundations, can achieve similar results.

Can I create a trust in Belgium?

You cannot create a traditional trust under Belgian law, but you may use other legal instruments for asset management or inheritance planning that comply with Belgian rules.

Are foreign trusts recognized in Ghent?

Foreign trusts are not automatically recognized. Their effectiveness depends on the situation, and Belgian courts may treat trust assets as if they are directly owned by the founder or beneficiaries, especially for tax purposes.

How are trusts taxed in Belgium?

Trusts are not a recognized tax entity in Belgium. Foreign trusts may be subject to transparency rules, with any income or assets potentially taxed as if held directly by Belgian residents involved in the trust.

Can trusts help me avoid inheritance tax?

No. Belgian inheritance law enforces forced heirship and imposes inheritance taxes on worldwide assets of Belgian residents. Attempting to bypass these rules with foreign trusts can create legal and tax penalties.

How can I protect my assets for my children in Ghent?

You may use structures like private foundations, life insurance contracts, or tailored mandates. A legal professional can explain which tool best fits your objectives while complying with Belgian law.

Will Belgian law apply to my foreign trust if I live in Ghent?

If you are a Belgian resident or your assets are in Belgium, Belgian law and tax rules will almost certainly apply, even if your trust is set up abroad.

Is it possible to set up a life interest or usufruct similar to a trust?

Yes. Belgian law recognizes usufruct, which allows an individual to use property during their lifetime while the "naked" ownership is held by someone else, often used in family inheritance planning.

Should I consult a lawyer before using a trust or similar structure?

Absolutely. The complex interaction between Belgian law, foreign structures, and tax requirements makes professional advice essential for avoiding costly mistakes.

What documents should I prepare for a consultation about trusts or mandates?

Bring any relevant documents regarding your assets, existing trusts, wills, and information about family members or beneficiaries. This will help your lawyer give accurate advice.

Additional Resources

For individuals seeking more information or assistance about trust alternatives in Belgium or Ghent, the following resources can be valuable:

- Belgian Federal Public Service Finance - for information on tax obligations - Notary offices in Ghent - for estate planning and inheritance matters - Bar Association of East Flanders - for finding accredited legal professionals - Belgian Association of Estate Planners - for specialized advice on complex estate structures - Local banks and private wealth management services - for guidance on fiduciary and financial instruments

Next Steps

If you are considering trust arrangements or need guidance for estate planning in Ghent, start by gathering all relevant documents and outlining your goals. Contact a local lawyer experienced in estate planning, mandates, or international asset management. Be upfront about any foreign ties, trusts, or assets you hold to ensure your advisor fully understands your situation. Schedule an initial consultation to discuss your options and understand both the advantages and limitations of Belgian legal structures. Applying professional advice from the outset can help you avoid legal conflicts and secure your assets and wishes for the future.