Document background
The Family Trust Agreement serves as the foundational document for establishing and managing family wealth structures under Danish law. While Denmark doesn't recognize traditional common law trusts, these arrangements are typically structured as foundations or similar legal entities that achieve trust-like objectives. The document is essential when families wish to establish a formal structure for managing and preserving wealth across generations, providing for family members, and potentially maintaining family business interests. It details the transfer of assets to the trust, governance mechanisms, distribution policies, and administrative procedures while ensuring compliance with Danish foundation law, inheritance regulations, and tax requirements. The agreement is particularly relevant for high-net-worth families seeking to implement sophisticated estate planning strategies while maintaining control over asset distribution and family wealth preservation.
