Treuhänder

Treuhänder is a term used in German-speaking legal contexts to describe a person or organization that holds assets or exercises powers for the account of another, the beneficiary, under a trust-like arrangement known as a Treuhand. In such arrangements, the Treuhänder does not own the assets free of obligations; instead, ownership or control is held subject to the terms of the trust and the beneficiary’s entitlements. The Treuhänder is required to act in the beneficiary’s best interests and to manage assets with loyalty (Treuepflicht) and care (Sorgfaltspflicht). Typical duties include keeping accurate accounts, reporting to the beneficiary, segregating trust assets from the trustee’s own property, and avoiding conflicts of interest. Investments and distributions are generally governed by the contract, legal standards, or court rules.

Treuhänder appear in various forms. A private individual may administer a family estate or a minor’s funds, an employee trust may hold shares on behalf of employees, and professional fiduciaries (Treuhänder) provide services such as accounting, tax advice, asset management, or real estate administration. In many jurisdictions, Treuhänder are subject to professional or statutory regimes and may be licensed or regulated by professional bodies or authorities.

Liability and termination: breach of fiduciary duties can expose the Treuhänder to civil liability for losses or misappropriation. A Treuhand arrangement ends when the terms are fulfilled, by mutual agreement, when the beneficiary’s rights are exhausted, or upon resignation, incapacity, or removal by court or contract. The beneficiary typically receives a final accounting and transfer of remaining assets according to the agreed terms.