Money Loves Silence: Trusts, Funds, and Other Capital Management Instruments

Among all property management methods, the greatest attention is given to trusts established under Anglo-American standards and to continental funds, which are special legal entities. Russian lawmakers have opted for the latter, incorporating rules on testamentary personal funds into the Civil Code (2017), followed by inter vivos personal funds (2021). In 2024, the personal fund model was refined: the release of fund information from the registry was prohibited; funds were allowed to be capitalized with assets from third parties; arbitration clauses could be included in fund charters; and foreign law could be applied to regulate a fund’s internal affairs. Russian personal funds can also be established by non-residents. Which asset segregation models best meet the economic needs of owners? What steps should legal systems take to ensure a balanced protection of the interests of creditors whose claims arose before the asset segregation, as well as “new” creditors who enter into relations with the fund manager? Is it necessary to create specific rights for beneficiaries, and what legal tools can achieve this? What principles should guide the resolution of conflicts between the interests of an owner’s creditors and those of the beneficiaries? How should taxation be structured in these cases? Should it encourage or, conversely, discourage asset segregation and the capitalization of personal funds?