Document background
The Trust Fund Agreement (Treuhandvereinbarung) is a crucial document used when establishing a fiduciary arrangement under German law. This document is essential when parties wish to create a structured asset management arrangement where a trustee manages assets for the benefit of specific beneficiaries. It's particularly relevant for wealth management, charitable purposes, or corporate structuring. The agreement must be carefully drafted to comply with German civil law principles, as Germany doesn't recognize trusts in the common law sense but instead uses the concept of Treuhand. The document needs to address specific German regulatory requirements, including those from BaFin (Federal Financial Supervisory Authority), anti-money laundering regulations, and investment laws. It's commonly used by financial institutions, family offices, and corporate entities for various purposes including asset protection, investment management, and succession planning.
