As a trust specialist, he was recently tasked to assist a Hungarian trustee in taking over the role of trustee and changing the governing law to Hungarian of a Jersey trust for tax savings reasons. The task was challenging for a number of reasons. First of all, no such transaction was carried out before from a Hungarian perspective, so the type of task ahead was completely new. Secondly, the settlor of the trust had passed away, which meant the trust deed could only be modified by the trustee and the beneficiaries. In order to effect this and avoid any invalidity, the clauses of the Jersey trust deed, along with the applicable laws for trusts under Jersey and Hungary had to be carefully analysed. Thirdly, liability and indemnity issues arose as to the takeover of the trust. Intense negotiations had to be carried out with the Jersey trustee in order to adequately protect the Hungarian beneficiaries from any future liability.
He was also recently entrusted with devising a trust structure for a client from a former Soviet republic who required maximum asset protection. This task was quite challenging for a number of reasons. First of all, the existing structure of the client had to be very carefully analysed in order to avoid any non-compliance with tax compliance regulations upon transferring the assets into a Hungarian trust. Secondly, the client requested extra layers of protection, therefore a Board of Protectors and an Investment Committee had to be set up as parts of the trust. Given that no such roles were ever created for a trust from a Hungarian perspective, the task of assigning the exacts rights and responsibilities for these bodies required extensive research of foreign jurisdictions as well as critical thinking.