treuhand

Treuhand is a fiduciary arrangement in civil-law jurisdictions whereby a person or entity (the Treuhänder, trustee) holds assets for the benefit of another (the Begünstigter, beneficiary) under a Treuhandvertrag or similar instrument. The trustee administers the assets for a defined purpose, and must act with loyalty, care, and prudence. The treuhand assets are typically kept separate from the trustee’s own property, and the trustee provides accounting or reporting upon request. Depending on the jurisdiction, legal ownership of the assets may lie with the trustee or with the beneficiary, but in all cases the trustee bears fiduciary duties toward the beneficiary.

Treuhandverhältnisse occur in various forms, including private trust agreements, Treuhandkonten (trust accounts), and corporate arrangements where shares or rights are held by a trustee for the beneficial owners. In Switzerland, trust-like structures are common in asset management and succession planning, with Treuhandgesellschaften (trust companies) and Treuhandstiftungen (trust foundations) serving as standard vehicles. In Germany and Austria, Treuhand mechanisms are widely used in private wealth management, corporate governance, and employee participation schemes, though the precise legal treatment can differ.

Legal framework and liability: breaches of fiduciary duties can give rise to civil liability, and the exact rules are determined by the contract and applicable civil or corporate law. Regulation and licensing may apply to professional Treuhänder in some jurisdictions.

Applications: estate and inheritance planning, asset protection, governance of corporate assets, and charity or foundation management.