Best Trusts Lawyers in Lübeck

About Trusts Law in Lübeck, Germany

The concept of "trusts," as commonly understood in Anglo-American law, does not have a direct equivalent in German law, including in Lübeck. Instead, German law utilizes other legal structures to achieve similar outcomes, such as foundations ("Stiftungen"), fiduciary arrangements, and contractual agreements. When people refer to "trusts" in Germany, they often mean these alternative structures, which are regulated by the German Civil Code (Bürgerliches Gesetzbuch, BGB) and other relevant statutes. Understanding the distinction is critical for anyone seeking to manage assets, inheritance, or fulfill charitable objectives in Lübeck.

Why You May Need a Lawyer

There are several situations where legal guidance is essential when dealing with trusts or trust-like structures in Lübeck:

• Setting up a foundation for charitable or private purposes
• Inheritance planning for individuals with assets in several jurisdictions
• Transferring assets to children or heirs efficiently
• Managing assets for minors or incapacitated individuals
• Resolving disputes or interpreting the intentions of the settlor
• Tax considerations related to wealth management
• Ensuring compliance with transparency and anti-money laundering laws
• Receiving foreign trusts or dealing with cross-border legal issues
• Protecting family-owned businesses or real estate
• Seeking advice on succession planning under German law

A lawyer can help interpret the applicable laws, choose the right structure for your goals, draft documents, and navigate the complex regulatory environment.

Local Laws Overview

German law, including that applicable in Lübeck, does not recognize trusts in the Anglo-American sense due to the principle of "Unity of Legal Ownership." Instead, the following local legal frameworks are often used:

• Foundations (Stiftungen): Legal entities created to hold and manage assets for a specified purpose. Common for charitable giving or family asset management.
• Fiduciary Arrangements (Treuhand): A contractual relationship where one party (the fiduciary) manages assets on behalf of another (the principal). These arrangements are contract-based and governed by German civil law.
• Testamentary Dispositions and Inheritance Law: Wills and inheritance contracts are strictly regulated under the BGB, ensuring clarity regarding asset distribution on death.
• Taxation: Transfer of assets, both during life and upon death, may trigger gift or inheritance tax, depending on the relationship between the parties and the value of the assets.
• Foreign Trusts: Germany may recognize certain effects of foreign trusts, especially regarding inheritance and property located abroad, but domestic rules will apply for assets located in Germany.

Navigating these legal frameworks requires expertise, especially when assets or beneficiaries are international, or when interests need to be protected over multiple generations.

Frequently Asked Questions

What is the closest equivalent to a trust in Lübeck, Germany?

The closest equivalents are foundations ("Stiftungen") and fiduciary arrangements ("Treuhand"). Both serve some similar purposes but are regulated differently.

Can I create an Anglo-American style trust in Germany?

No, German law does not provide for Anglo-American trusts. However, some objectives can be achieved using foundations or contractual fiduciary arrangements.

How does a foundation (Stiftung) work under German law?

A foundation is a legal entity that holds assets to achieve a stated purpose, managed by a board according to its statutes. It must be recognized by a public authority and is subject to oversight.

Can I use a trust from another country in Lübeck?

German law may recognize the effects of a foreign trust in certain cases, particularly regarding inheritance and property abroad, but German rules govern assets located in Germany.

What are the tax implications of setting up a foundation or fiduciary arrangement?

Transfers of assets into a foundation or fiduciary arrangement may be subject to gift or inheritance tax. Professional tax advice is essential to plan appropriately.

Do I need a lawyer to set up a foundation or fiduciary arrangement?

Yes, due to the complexity of German regulations, legal expertise is important to ensure compliance and that your intentions are properly documented.

Can foundations in Germany be created for private family purposes?

Yes, family foundations are permitted, although there are specific rules about their operation, governance, and permissible purposes.

How is the management and oversight of a foundation handled?

Foundations are managed by a board and subject to supervision by the local foundation authority to ensure compliance with legal and statutory requirements.

What happens if beneficiaries dispute the administration of a Stiftung or Treuhand?

Disputes are resolved according to the foundation’s statutes, the contract, and under German civil law, often requiring mediation or legal proceedings.

Where can I get more information or help regarding trusts in Lübeck?

Relevant information can be obtained from a lawyer specialized in inheritance and foundation law, local notaries, and the foundation authority ("Stiftungsaufsicht") of Schleswig-Holstein.

Additional Resources

• Local notaries and legal offices specializing in inheritance, foundations, and fiduciary law
• The Lübeck Chamber of Notaries (Notarkammer Schleswig-Holstein)
• The Schleswig-Holstein Foundation Authority (Stiftungsaufsicht des Landes Schleswig-Holstein)
• Local Amtsgericht (District Court) dealing with probate and inheritance matters
• German Bar Association (Deutscher Anwaltverein) for referrals to legal experts
• Consumer advice centers (Verbraucherzentrale Schleswig-Holstein) for general guidance

Next Steps

If you are considering setting up a foundation, fiduciary arrangement, or need advice regarding trusts in Lübeck, you should:

1. Identify your objectives (asset protection, succession planning, charitable giving, etc.).
2. Gather all relevant documentation concerning assets, beneficiaries, and any existing arrangements.
3. Consult a lawyer or notary who specializes in inheritance, foundations, or fiduciary law in Lübeck.
4. Discuss your wishes and concerns openly, and consider future scenarios or potential disputes.
5. Follow legal guidance to select the right structure and ensure compliance with German law.
6. Keep all documents safe, and notify key parties (e.g., family or beneficiaries) of your arrangements.

Taking these steps with professional advice ensures that your intentions are fulfilled and your interests are protected under local law.