Trust Foundation

A Trust Foundation is a dependent Foundation, which is also known as Subfoundation  is called if it is administered by a foundation with legal capacity as a trustee and is managed by a Contract between the founder and the trustee (sponsor; here: the animal protection foundation) or by a disposition of death. The trust foundation is free in the choice of names. The founder transfers the assets of the foundation to the trustee, who shall separate from own assets managed for the trust foundation.

The TrustFoundation purpose can be designed according to the wishes of the founder, up to and including the specific care of a particular animal or the free use of the funds by the trustee for animal welfare. The purpose of the foundation is combined with the other basic stipulations. in a Statutes written downwhich is part of the contract with the trustee (here: the animal protection foundation). Often the foundation is given its own body which decides on the use of the foundation's funds. Externally, the trustee acts on behalf of the foundation, which has no legal personality of its own.  

Trustee, as service providers for the trust foundation, usually come from the following areas: legally capable foundations (here, for example, our animal welfare foundation), parishes, universities, municipal foundation administrations and banks/savings banks. 

Advantages:

• The trust foundation's assets are not subject to any minimum amount set by the state. Already with a low five-digit amount a trust foundation could be established.
• The trust foundation is a very flexible form of foundation. For the establishment of a trust foundation, the following is required No state approval procedure required. The requirements for incorporation are very simple.
• A control is only carried out by the tax office. At the same time all tax privileges of a foundation apply and it can apply to the competent tax authority for the Recognition of the Non-profit status can be applied for. This means that donation receipts can also be issued for donations and endowments.
• The Trustee can take over the entire administration and it must therefore none of its own administrative structure (e.g. bookkeeping etc.) be created. By using the organisational structure of the trustee, the Administrative costs low be held.
• For the establishment of a trust foundation only a few weeks are required. (For the establishment of a foundation with legal capacity, from several months up to to one year).
• Under certain circumstances the Foundation purpose according to the regulations in the Articles of Association changed very easily or even dissolve the foundation without requiring the consent of a supervisory body or authority.
• As an independent corporate tax subject (§ 1 para. 1 no. 5 KStG), the Non-profit law also applicable to trust foundations.