Best Trusts Lawyers in Herentals

About Trusts Law in Herentals, Belgium

Trusts are legal arrangements commonly used in Anglo-Saxon countries, allowing an individual (the settlor) to transfer assets to a trustee, who manages them for the benefit of specified beneficiaries. In Belgium, including Herentals, the concept of a “trust” as it is known in common law does not exist in the same form. Instead, Belgian law provides similar mechanisms such as fiduciary arrangements, private foundations (“stichting privé”), and patrimony management contracts. These are used for estate planning, asset protection, or charitable purposes. While you cannot create a classic trust under Belgian law, carefully structured alternatives can achieve similar objectives within the local legal framework.

Why You May Need a Lawyer

Dealing with trusts and trust-like structures in Herentals can be complex due to the absence of a direct legal concept of trust. You may need a lawyer in several common situations, including:

• Planning your estate and seeking to preserve family wealth for future generations
• Wishing to set up a private foundation or fiduciary structure for charitable giving
• Facing tax obligations or inheritance rules related to international trusts with Belgian residents or assets
• Interpreting or contesting existing trust-like arrangements involving Belgian law
• Ensuring compliance with cross-border legal requirements if you have assets or beneficiaries in multiple countries
• Navigating the proper registration, reporting, and management of fiduciary structures
• Translating or adapting foreign trusts to comply with Belgian legal and tax requirements

A local lawyer experienced in trusts, estate law, and tax can help you avoid pitfalls and protect your interests.

Local Laws Overview

Belgium, including Herentals, does not recognize trusts as a separate legal institution. Instead, it relies on domestic laws related to contract, inheritance, and property. Some key aspects to be aware of include:

• Private Foundations: This legal entity can be set up to manage assets for a specific non-profit purpose or family interest.
• Fiduciary Agreements: Belgian law allows for certain fiduciary contracts where one person (fiduciary) manages assets for another (beneficiary), but these arrangements are strictly regulated.
• Taxation: Both Belgian residents and those with Belgian assets must comply with tax obligations, including reporting requirements for foreign trusts or foundations. Belgian authorities may seek to tax distributions or assets held in offshore trusts.
• Inheritance Law: Belgian inheritance law is based on forced heirship, ensuring certain heirs cannot be disinherited. This affects how trust-like arrangements are structured and recognized.
• Recognition of Foreign Trusts: Belgium has ratified the Hague Trusts Convention, but only recognizes trusts in limited circumstances, mainly for tax or conflict-of-laws purposes, not for asset-holding under Belgian law.
• Transparency: New rules on the registration of ultimate beneficial owners (UBO) may affect foundations and similar structures in Belgium, requiring disclosure of beneficiaries.

Frequently Asked Questions

What exactly is a trust and can I set one up in Herentals, Belgium?

In its classic form, a trust as known in English law is not available under Belgian law. However, similar results can often be achieved with private foundations or fiduciary contracts, guided by Belgian legal professionals.

Can I use a foreign trust if I live in Herentals?

Yes, but you must comply with Belgian tax, inheritance, and disclosure rules. Foreign trusts can be scrutinized by Belgian authorities, and using one for Belgian assets or beneficiaries requires local legal advice to avoid tax and legal complications.

What are the alternatives to trusts in Belgian law?

Popular alternatives include private foundations, patrimony management companies, and fiduciary arrangements. These structures can offer many of the benefits of a trust, such as asset protection and segmented ownership, within the boundaries of Belgian law.

How are trust-like structures taxed in Belgium?

Tax rules are complex and depend on the specific arrangement. Distributions from foreign trusts can be taxed as gifts or inheritance, and Belgian law requires transparent reporting. Local entities like private foundations have their own tax regimes and must be managed carefully.

Does Belgian inheritance law affect trusts or foundations?

Yes. Belgian forced heirship rules protect certain heirs (such as children) from being disinherited. Even if assets are placed in a trust or foundation, these rules may apply and can limit how assets are distributed after death.

Can I use a trust to avoid Belgian taxes?

Trying to use trusts as a means of avoiding taxes can lead to legal issues and penalties. Belgian authorities scrutinize such arrangements closely, especially if they involve offshore or foreign elements. Always seek legal advice before setting up such structures.

Is it possible to convert a foreign trust into a Belgian foundation?

Converting directly is not usually possible. However, assets from a foreign trust can sometimes be transferred to a new or existing Belgian foundation, subject to tax and legal review. This may also require dissolving the foreign trust in accordance with its rules.

What must be reported to Belgian authorities regarding trusts?

Belgian residents are required to declare their participation in foreign legal entities, including trusts, and must comply with UBO registers. Failure to comply can result in fines or tax reassessments.

Are trusts recognized by Belgian courts?

Belgian courts will recognize certain aspects of foreign trusts, particularly for conflict-of-laws purposes, but will not uphold a trust as a legal vehicle within Belgium itself.

How do I find the right lawyer for trusts or estate planning in Herentals?

Look for an attorney specializing in estate planning, international asset management, and tax law. Local bar associations or professional networks can provide recommendations for experienced lawyers familiar with Belgian law and trust alternatives.

Additional Resources

For assistance and more information, the following resources can be helpful:

• Herentals Bar Association (Balie Herentals): Offers a directory of local lawyers with expertise in private law, estate planning, and tax.
• FPS Finance (Federale Overheidsdienst Financiën): Provides guidance on tax and reporting obligations for trusts, foundations, and foreign entities.
• Notarial Office (Notariaat): Notaries in Herentals are experienced in estate planning and can advise on Belgian alternatives to trusts.
• Belgian Federation of Notaries (Federatie van Notarissen): Offers information on private foundations and inheritance law in Belgium.
• Estate Planning Lawyers: Local law firms in Herentals specializing in estate law, inheritance, and private foundations can offer tailored advice.

Next Steps

If you are considering setting up a trust-like arrangement or need advice on an existing foreign trust affecting you in Herentals, take the following steps:

1. Gather information about your goals, such as asset protection, estate planning, or charitable purposes.
2. Prepare any relevant documents, such as wills, contracts, or trust deeds.
3. Consult with a lawyer specializing in estate planning and international asset management in Herentals.
4. Discuss your specific needs, and explore alternatives like private foundations or fiduciary arrangements under Belgian law.
5. Review tax and reporting obligations to ensure full compliance with Belgian regulations.
6. Maintain a record of advice received and all legal documents created or adapted.

Professional legal guidance is essential in this field to ensure your arrangements are valid, tax-efficient, and compliant with Belgian and European laws.