Liability of the Parties to the Estate Trust Agreement

Abstract

The estate, which includes equity rights, securities, intellectual property rights, real estate, is often requires the introduction of trust administration until the heirs inherit. The rules on estate trust administration refer the enforcer to the general provisions of Chapter 53 of the RF Civil Code, designed primarily for business relations. However, the specific nature of the trust administration does not allow us to apply general provisions on the liability of the parties to the trust agreement, which leads to insecurity of the participants to the estate trust agreement. Due to the nature of the estate trust agreement, the notary, as a trustor, must not and cannot be liable for the debts arising in connection with the performance of their obligations under the estate trust agreement. At the same time, in practice, it would be difficult to find a citizen willing to perform trust agreement for a stranger's estate within several months, provided that often he is not a professional but still bears unlimited liability for the debts arising out of the trust agreement to third parties and beneficiaries. The absence of opportunities to lay risks of loss on the estate directly enshrined in the legislation, as well as providing the beneficiaries only with a right to bring a claim against the trustee and an opportunity to offer and sometimes insist on the candidature of the trustee, excludes the efficient estate trust. Irrational decisions laid down in legislative regulation of rules on liability for the obligations of the trustee that arose under the trust agreement does not allow direct and reliable protection of the interests of beneficiaries and the provision of the protection of the notary's estate. In our view, there is a need to bring the law into conformity with the actual circumstances of judicial and notarial practice, to protect the interests of beneficiaries and ensure the protection of the estate of the scope of the notary.