Dynasty Trust

We offer the Dynasty Trust as a tool for the protection and intergenerational transfer of businesses and substantial estates, with solutions that comply with Italian law.

A trust is a fiduciary arrangement whereby a trustee holds and manages assets on behalf of the beneficiaries, in accordance with the terms set out by the settlor. The assets are legally transferred to the trustee, who manages them as a separate fund, distinct from their own personal assets. In a Dynasty Trust, the settlor entrusts the trustee with the responsibility of managing a business or an estate and overseeing its intergenerational transfer in favour of the settlor’s family members or closest loved ones.

It is well known that Italian inheritance law imposes limits on the ability to transfer assets gratuitously, reserving a portion of the estate for close family members (heirs entitled to a reserved portion). This often leads to lengthy and complex inheritance disputes upon the opening of the succession, which can compromise the management and sometimes even the survival of the business.

We believe that the Dynasty Trust can provide an effective solution to these issues. This article explains in detail how the role of the generational trustee ensures the respect of the rights of all parties involved and honours the settlor’s wishes.

For a technical (yet accessible) deep dive, we recommend reading Carlo Cicala’s book on the trust of company shares, which specifically addresses Italian law.