Document background
The Family Trust Agreement is a sophisticated legal instrument used in German estate planning and wealth management. It serves as the foundational document for establishing a trust-like structure (Treuhand) that enables families to manage, protect, and transfer wealth across generations while maintaining control and ensuring tax efficiency. This document becomes necessary when families seek to establish a formal structure for asset management, succession planning, or wealth preservation. The agreement must carefully navigate German legal requirements, as Germany doesn't recognize common law trusts but instead relies on contractual arrangements to achieve similar objectives. It typically includes detailed provisions for asset management, distribution rules, governance structures, and succession planning, all while ensuring compliance with German civil law, tax regulations, and reporting requirements. The Family Trust Agreement is particularly relevant for high-net-worth families seeking to establish a formal framework for intergenerational wealth transfer and asset protection.
