On December 16, 2025 the annual conference “High Net Worth Individuals’ Assets Management: Legal and Taxation Issues” organized by Pravo.ru was held.
Among issues discussed at the conference were capital strategy construction and wealth enhancement in the present settings. One of the most popular and top requested subjects was the one concerning personal trust funds.
Valentin Moiseev, attorney, PhD in Law, Partner and Tax Law Practice leader of Andrey Gorodissky & Partners Law Firm (AGP) together with other speakers in the session delivered the master class “Personal Trust Fund: Stepwise Algorithm of Establishment and Management in 2025” and focused attention of the audience on tax risks and unobvious tax implications, associated with establishment and functioning of personal trust funds and using thereof for tax optimization purposes.
Valentin also touched upon documentary evidence of decisions taken by personal trust funds’ managing bodies and highlighted aspects to which attention should be paid when distributing property to beneficiaries.
“A personal trust fund is an organization, therefore it is a taxable entity same as other taxpayers such as any legal entity which by default is liable to income tax at the rate of 25%, unless it has opted for a different tax treatment or meets certain requirements established specifically for a personal trust fund. In the event more than 90% of a personal trust fund’s income is accounted for by incomes included in the exhaustive list of passive income, it may apply the 15% tax rate. This is also a considerable percent but still more favorable than 25%. It can also choose to apply the simplified taxation system (STS) like most of other organizations meeting rather simple qualifying requirements for being eligible for the STS and may apply the rate of 15% of the profit or 6% of the revenue”, believes Valentin.
A detailed video is available at the following link in the “Insights” section.
