Best Trusts Lawyers in Hasselt

About Trusts Law in Hasselt, Belgium

Trusts are a familiar concept in common law countries, but Belgium is a civil law jurisdiction and does not have a domestic trust regime. In Hasselt and across Flanders, residents who use trusts typically rely on foreign trusts set up under the law of another country. Belgian law may recognize some effects of a foreign trust for specific purposes, particularly taxation and compliance, but the trust itself is not a Belgian legal form.

Because of this, people in Hasselt who are considering a trust often compare it with Belgian alternatives such as a private foundation, a family holding company, or life insurance solutions. Any cross-border plan involving a trust must be aligned with Belgian civil law, inheritance rules, regional inheritance and gift taxes, and Belgium’s anti-avoidance and transparency rules that target legal arrangements. Coordination with a Belgian notary and a lawyer with cross-border experience is strongly recommended.

Why You May Need a Lawyer

You may need a lawyer if you are thinking of creating a foreign trust, already are a settlor, trustee, protector, or beneficiary of a trust, or expect to receive trust distributions while resident in Belgium. A lawyer can help you understand whether a foreign trust achieves your goals for asset protection, succession planning, or tax efficiency under Belgian rules.

Legal advice is also important if you plan to transfer Belgian or foreign assets into a trust, hold Belgian real estate via a trustee, or reorganize family wealth through gifts, foundations, or companies. A lawyer can assess how Belgian forced-heirship rules, matrimonial property regimes, and clawback rules interact with your plan, and how Flemish inheritance and gift taxes apply.

People often seek help when they receive questionnaires from banks or tax authorities, when they must complete Belgium’s trust reporting in their personal tax return, or when they wish to regularize an existing structure. If divorce, creditor claims, emigration or immigration, or a death in the family is on the horizon, early legal guidance helps prevent costly disputes.

Local Laws Overview

No Belgian trust law - Belgium has no domestic trust vehicle. Foreign trusts can be used, but their effects are tested against Belgian private international law, property rules, and public policy. Courts and registries focus on the legal owner named on title. This creates practical constraints, especially for Belgian real estate, because the land registry records ownership in the name of a person or entity, not a trust.

Transparency - Belgium has anti-avoidance rules for legal arrangements commonly referred to as the Cayman tax. In many cases, income and gains realized by a trust are attributed for Belgian tax purposes to the Belgian-resident founder or certain beneficiaries. Belgian residents with ties to a foreign trust may have reporting obligations in their annual tax return. Non-compliance can trigger penalties.

Regional inheritance and gift taxes - In Hasselt, the Flemish Region’s rules apply to inheritance and gift taxes. Transfers to or from a trust may be taxed depending on the timing, the parties involved, and whether the transfer is treated as a gift, a distribution, or a deemed transfer at death. Unregistered gifts of movable assets are subject to a look-back period for inheritance tax if the donor dies within a specified number of years after the gift. The Flemish Tax Administration administers these taxes.

Forced heirship and clawback - Belgian law protects certain heirs with a reserved share. Even if assets are placed in a foreign trust, gifts made during life can be brought back into account at death to protect the heirs’ reserved portion. Planning must respect these rules to avoid disputes and later clawback.

AML and beneficial ownership - Trustees or fiduciaries with connections to Belgium may have anti-money laundering and beneficial ownership registration duties. Financial institutions in Belgium apply strict know-your-customer checks for trust-related accounts and investments.

Real estate and registration - Belgian real estate cannot be owned by a trust as such. Title would be registered to a trustee in an individual or corporate capacity. This can raise lending, liability, and tax issues, and often a Belgian company or a different structure is considered instead.

Frequently Asked Questions

Do trusts exist under Belgian law?

No. Belgium does not have a domestic trust regime. Belgians commonly use foreign trusts or Belgian alternatives such as private foundations, family companies, or life insurance for estate planning.

Can a Belgian resident set up a foreign trust?

Yes, but the trust must be valid under the foreign law chosen, and the arrangement must comply with Belgian civil law, tax, and reporting rules. Belgian anti-avoidance rules may attribute the trust’s income to the Belgian-resident founder or beneficiaries.

How are trusts taxed for Belgian residents in Hasselt?

Under transparency rules that target legal arrangements, trust income and gains may be taxed directly in the hands of the founder or certain beneficiaries as if the trust were transparent. Distributions can also be taxed depending on the circumstances. Flemish inheritance and gift taxes may apply to transfers into or out of the trust. Precise outcomes depend on the trust deed, control rights, and the parties involved, so a tailored review is essential.

Do I need to report a foreign trust in my Belgian tax return?

Belgian residents who are founders, certain beneficiaries, or who control a trust often have reporting obligations in their annual tax return, including disclosure of the legal arrangement and possibly its income. The exact forms and details change over time, so obtain up-to-date advice before filing.

Can a trust own Belgian real estate?

Belgian registries do not record ownership by a trust. Title can be held by a trustee personally or by a company. This creates practical and tax issues, such as liability, financing, and registration duties. Many families use a Belgian company or other planning tools instead of a trust for local real estate.

What happens to forced-heirship rights if assets are in a trust?

Belgian forced-heirship rules protect certain heirs with a reserved share of the estate. Gifts made during life, including contributions to a trust, can be subject to clawback at death to restore the heirs’ reserved portion. Planning must be structured to respect these rules.

Are distributions from a trust taxable in Belgium?

They can be. If the trust is treated as transparent, income is generally taxed annually at the level of the founder or beneficiaries regardless of distribution. If not fully transparent, certain distributions may be taxed as income. The character of the distribution, the trust’s accounts, and Belgian look-through rules are decisive.

Is there a Belgian alternative to a trust for succession planning?

Yes. Common options include a private foundation, a family holding company, gifts with reservation of usufruct, marriage contract adjustments, life insurance solutions, and family agreements. The right choice depends on your objectives, family situation, and asset profile.

Do trustees have compliance duties in Belgium?

Trustees with a Belgian nexus can face anti-money laundering and beneficial ownership registration duties and must cooperate with financial institution checks. They may also need Belgian tax numbers if they manage Belgian-source income or interact with Belgian authorities.

Can I request a tax ruling about my trust?

Yes. Belgium has a private ruling service that can confirm the tax treatment of a proposed structure. A lawyer or tax adviser can prepare the request and coordinate any pre-filing meeting. Rulings are case-specific and must be consistent with anti-abuse rules.

Additional Resources

Flemish Tax Administration, Federal Public Service Finance, Belgian Ruling Commission, Royal Federation of Belgian Notaries, Bar Association of Limburg in Hasselt, National Bank of Belgium for financial compliance guidance, Local civil law notary offices in Hasselt for gifts and estate documentation, University legal clinics and consumer protection bodies for general legal information.

Next Steps

Clarify your goals first - protection from creditors, smoother inheritance, family control, or tax efficiency. Make a list of your assets, family members, residence and nationality of key persons, and any existing structures such as companies, foundations, or insurance policies.

Collect documents - identification, marriage contract, prior wills, existing trust deeds, company statutes, property titles, portfolio statements, and recent tax returns. These will help your adviser assess risks and opportunities quickly.

Speak to a local professional team in Hasselt - a lawyer with cross-border trust experience, a civil law notary for gifts and estate instruments, and a tax adviser familiar with Flemish inheritance and gift taxes and the Cayman tax. Ask for a scope, timeline, and fee estimate.

Request a written plan - insist on a clear memo explaining whether a foreign trust is appropriate, what Belgian alternatives exist, how each option is taxed, and how to comply with reporting. If needed, consider obtaining a tax ruling to secure advance certainty.

Implement and comply - if you proceed, ensure the trust deed matches Belgian objectives, update wills and marriage contracts, register any required information, file required tax and trust disclosures, and brief your bank so that on-boarding and monitoring go smoothly.

Review regularly - life events, moves between regions or countries, and law changes can alter outcomes. Put annual reviews on your calendar and keep records organized to make updates fast and cost-effective.

This guide is general information only. Always obtain personalized advice before taking action.