Usaldusühing

Usaldusühing (trust association) is a legal arrangement in which property is placed under the control of trustees to manage it for the benefit of designated beneficiaries, according to a trust agreement. The agreement specifies the assets, the beneficiaries, the duration of the trust and the powers and duties of the trustees. Trustees have fiduciary duties, including loyalty, prudent management and accountability to the beneficiaries and to the settlor where relevant.

Formation and operation: The trust is created by a contract between the settlor and the trustees. The assets placed in the trust are held and managed by the trustees, separate from their personal property. Distributions to beneficiaries follow the terms of the trust deed. The arrangement can be limited in time, linked to achieving a purpose, or open-ended, and may be dissolved by agreement or upon termination of the trust’s purpose.

Legal status in Estonia: In modern Estonian law, there is no widely used separate corporate form explicitly called “usaldusühing.” When similar fiduciary arrangements are needed, parties commonly use contractual agreements or, for asset-holding and distribution purposes, the sihtasutus (foundation) or other established instruments. The choice depends on purpose, tax considerations and regulatory requirements.

History and usage: The term appears in Estonian legal literature and historical practice, but today its use is limited. In contemporary practice, trusts are typically implemented through contracts or foundations rather than as a distinct, standalone corporate form.