The wealth management foundation regime was introduced
into Hungarian law in March 2019 as a new asset protection and
estate planning vehicle, which should serve as an alternative to
similar foreign structures.
The wealth management foundation is an entity established for
the purpose of managing the assets granted to it by its founder and
to distribute assets and the proceeds of its activity to the
beneficiaries. The foundation can be established with an initial
endowment amounting to at least HUF 600 million (approx. EUR 1.9
million). The guiding principles of the management of the assets
granted to the foundation should be stated in an investment
policy.
The foundation is governed by a board consisting of at least
five individuals. The foundation is required to appoint a statutory
auditor and to have a supervisory board consisting of at least
three individuals. Under certain circumstances, additionally a
protector must be appointed.
