Best Trusts Lawyers in Nur-Sultan

About Trusts Law in Nur-Sultan, Kazakhstan

Trusts are legal arrangements in which one party, known as the trustee, holds and manages assets for the benefit of another party, known as the beneficiary. In Kazakhstan, the concept of trusts is governed primarily by civil law principles, with some adaptation from global best practices. Trusts are commonly used for estate planning, protecting family wealth, structuring investment funds, and managing business succession. Although Kazakhstan does not have a highly developed trusts law tradition compared to common law countries, there are mechanisms within the legal system that serve similar purposes, particularly through fiduciary management agreements and the Astana International Financial Centre (AIFC).

Why You May Need a Lawyer

Navigating the complexities of trusts and related legal structures in Nur-Sultan can be challenging without expert guidance. Some common situations in which people seek legal advice include:

• Establishing a trust or similar arrangement for estate planning and inheritance purposes.
• Managing or transferring family/business assets, especially when beneficiaries are minors or incapacitated.
• Protecting assets from creditors or ensuring the long-term well-being of loved ones.
• Navigating cross-border assets or multi-jurisdictional estate planning (where assets or beneficiaries are outside Kazakhstan).
• Meeting regulatory or tax requirements relating to fiduciary management and trust-like structures.
• Dispute resolution among trustees, beneficiaries, or other interested parties.

Local Laws Overview

The legal framework for trusts in Nur-Sultan is mainly grounded in the Civil Code of the Republic of Kazakhstan, which provides for fiduciary management of property. This is not a trust in the Anglo-American sense but allows for similar asset management arrangements. With the establishment of the Astana International Financial Centre (AIFC), a special legal regime based on English law has been introduced, and within the AIFC jurisdiction, proper trusts (as recognized under common law) can be created and enforced. Key aspects to consider include:

• The distinction between civil law (fiduciary management) arrangements and common law-style trusts (within AIFC).
• Requirements and formalities for setting up a fiduciary management contract or trust.
• Taxation issues, including potential benefits and obligations arising from trust arrangements.
• Regulatory compliance, particularly when trusts involve substantial assets or international components.
• The rights and responsibilities of trustees, beneficiaries, and settlors (founders of the trust).

Frequently Asked Questions

What is the difference between a trust under Kazakh law and a trust under AIFC law?

Under Kazakh law, trust-like arrangements are structured as fiduciary management contracts and do not fully separate legal ownership from beneficial interest as in common law. Within the AIFC jurisdiction, proper trusts following English law principles can be established, featuring a clearer division between trustees and beneficiaries.

Can anyone set up a trust in Nur-Sultan?

Within Kazakhstan proper, individuals and legal entities can enter into fiduciary management contracts. To establish a trust as defined under common law, this must generally be done within the framework of the AIFC.

Why should I consider using a trust or fiduciary arrangement?

Trusts and fiduciary arrangements offer benefits such as estate planning, protection of assets, financial confidentiality, tax planning opportunities, and ensuring family or charitable beneficiaries are cared for in the future.

Are trusts recognized by courts in Kazakhstan?

Traditional trusts are not recognized under general Kazakh law outside the AIFC, but fiduciary management contracts are enforceable. Trusts established under AIFC law are recognized within the AIFC jurisdiction.

What assets can be included in a trust or fiduciary management arrangement?

Virtually any kind of property-such as real estate, securities, cash, and business interests-can be managed within a fiduciary management contract or placed in a trust (primarily within the AIFC).

Can a foreign national be a trustee in Kazakhstan?

Yes, subject to certain legal and regulatory requirements, especially under AIFC law. In general Kazakh law, the rights and obligations of foreign trustees depend on their legal capacity and compliance with local laws.

Is there taxation on trusts in Kazakhstan?

Taxation depends on the structure, location, and nature of the assets and income involved. Trusts under AIFC law may qualify for specific tax regimes, while fiduciary management arrangements are taxed according to general Kazakh law. Professional advice is recommended.

How can trusts help in succession planning?

Trusts allow individuals to control the transfer of their assets to heirs and beneficiaries, often reducing the risk of disputes and ensuring that wishes are carried out efficiently.

How much does it cost to set up a trust?

Costs vary depending on the complexity of the arrangement, legal fees, and whether the trust is established under Kazakh or AIFC law. Generally, expect initial legal setup costs and ongoing trustee/manager fees.

How can disputes related to trusts be resolved?

Disputes may be settled through negotiation, mediation, or in court. If the trust is under AIFC law, the AIFC Court has jurisdiction. For fiduciary management agreements under Kazakh law, local courts or arbitration may be involved.

Additional Resources

For those seeking more information or assistance, the following can be helpful:

• Astana International Financial Centre (AIFC): Specializes in English law trusts, offering a framework for trusts, related services, and dispute resolution (AIFC Court and International Arbitration Centre).
• Ministry of Justice of the Republic of Kazakhstan: Responsible for civil legislation and registration of agreements.
• Local Law Firms: Experienced in estate planning, fiduciary management, and cross-border trust matters.
• Kazakhstan Bar Association: For referrals to qualified legal professionals.
• Notaries Public: For certifying documents related to fiduciary and estate documents.

Next Steps

If you are considering establishing a trust or require legal advice in the field of trusts and fiduciary management in Nur-Sultan:

• Clearly define your goals for asset protection, succession planning, or investment management.
• Gather information on your assets and intended beneficiaries.
• Consult a qualified lawyer who has experience in trusts, fiduciary management, and the AIFC legal framework.
• Discuss the most suitable structures-whether a fiduciary management contract or a trust within the AIFC-and understand their legal and tax implications.
• Prepare the necessary documentation with legal assistance and register any required agreements with relevant authorities.
• Keep your arrangements under review to reflect changes in laws, family circumstances, or asset portfolios.

Seeking professional legal advice can help you navigate the complex legal environment and ensure that your interests-and those of your beneficiaries-are fully protected in Nur-Sultan, Kazakhstan.