When and who benefits from asset management

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

If you do not want or do not know how to properly manage the property, delegate this to a specialist.

What is trust management of property

Let's say you got an apartment from your grandmother in another city, for example, in Saransk. You want to take it. But you don’t have time to go there, look for tenants, sign an agreement, control payments for housing and communal services. You can entrust this to a trustee for a small (or large - as you agree) fee.

The law permits the transfer of property to trust and obliges the trustee to act in your best interests. This person can take any legal and factual actions on your behalf, if you do not limit his powers in the contract.

Yulia Kislyakova Lawyer of the European Legal Service

The peculiarity of trust management is that the agreement is concluded not for one-time transactions with property, but for managing it for a long time.

What can be transferred to trust management

The law allows transferring into trust management:

1. Enterprises, property complexes and other real estate objects.
2. Securities, including those for which the rights are recorded in the electronic register, and not on paper.
3. Exclusive rights to the result of intellectual activity or to a means of individualization (brand, name, trademark, product line, and so on).
4. Other property - which one, is not specified in the law.

Now in Russia, trust management of property is more often used in the areas of commercial real estate lease and disposal of securities.

Why transfer property to trust

If you answer literally - to make your life easier.

For example, if you do not live in an apartment, someone should periodically check if everything is in order, if there are any leaks, if the windows and doors are intact, if there has been a theft. It is necessary to transfer meter readings to the management company, pay utility bills, see if there are registered letters from the tax or the FIU in the mailbox.

Denis Rumyantsev Managing Partner of Goodman Estate Real Estate Agency

Let's say the owners of other apartments decide to hold an extraordinary meeting regarding repairs in the entrances, fencing the territory, disposing of the common property of an apartment building. Your vote may become decisive, and you have not left anyone with a proxy to vote.

Rumyantsev notes that the trustee will deal with the listed issues, will be able to quickly solve problems and prepare the home for your return - for example, by ordering the services of a cleaning service.

The manager's input will be even more valuable if you rent out the property. Especially when it comes to several objects. The specialist will be able to quickly bring in new tenants when the old ones have moved out. He will monitor the maintenance of housing, making utility bills, compliance with agreements.

It is beneficial to conclude a property trust agreement if you yourself do not understand very well what to do with the property and how to dispose of it correctly.

Yulia Kislyakova Lawyer of the European Legal Service

This is important in the field of securities: to successfully invest, you need knowledge and experience. There are two of the most popular tools for a novice investor in Russia:

1. Mutual investment fund. You buy shares of a mutual fund, and specialists are already buying stocks and bonds using your funds, which will (or will not - as you are lucky) make a profit. Then you can redeem the shares and get money for them, taking into account the earned.
2. Individual investment account with trust. This is a brokerage account with which you can invest money in stocks and bonds. You just have to choose an investment strategy. Then the specialists of the broker company will act for you.

Direct transfer of securities to trust management is also possible. But usually management companies undertake this when it comes to a very solid capital of several tens of millions.

Another important plus: if you owe someone, then the property transferred to management will not be taken away from you. The exception is if you are bankrupt or the debts were formed precisely in the process of trust management.

Who can be a trustee

Only an employee of a commercial organization (but not a unitary enterprise) or an individual entrepreneur.

There are nuances depending on what kind of property you are transferring into trust and why. Only a legal entity with a license of a professional participant in this market can dispose of securities, money intended for transactions with securities.

You do not need a license if the trust only provides for rights related to securities, for example, the right to participate in a general meeting of shareholders.

Yulia Kislyakova Lawyer of the European Legal Service

Keep in mind: the trustee is liable with his own property if he made a transaction with excess of authority or in violation of restrictions. He is obliged to reimburse your losses.

How to choose a trustee

Konstantin Bobrov, director of the legal service of the United Center for Defense, recommends starting by checking whether there is an entrepreneur or company in the state register. If not, then they are not allowed to enter into a contract.

Then analyze the site of the manager, look for feedback on his work. Check on the website of the "Justice" system, whether the company was involved in litigation and for what reason.

When looking for specialists to manage securities, check in the register of the Central Bank if the company has a license for this. Check its reliability rating. The highest score is A ++ or AAA.

Please note: the transfer of property to trust does not insure you against all problems.

For example, a manager is interested in renting out an apartment as quickly as possible and will let not the most tidy tenants in there. That is why you need to choose it carefully.

How to draw up a trust management agreement

By law, the following must be specified:

1. What exactly do you transfer to trust.
2. Your data as a natural person or company founder.
3. How much and how will you pay the trustee.
4. The term of the agreement - it cannot exceed 5 years.

An agreement on the transfer of immovable property to trust management must be registered with Rosreestr. Otherwise, it will be invalid.

In addition to the mandatory data, you must specify in the contract and other important terms for you.

The lawyer of the European Legal Service Yulia Kislyakova advises to stipulate what the trustee cannot do without the written consent of the owner of the property. So the apartment cannot be sold, for example, without your permission.

How to break a trust agreement

If none of the parties at the expiration of the contract declares the termination of its validity, it will automatically be extended for the same period and on the same conditions.

The contract is terminated if one of the parties dies or goes bankrupt. In addition, participants can opt out of the contract. The other party must be notified of this three months before the termination of the contract, unless a different period is provided.

Things to Remember

1. Trust management of property is beneficial to those who cannot or do not want to dispose of it on their own.
2. Most often, such an agreement is drawn up for transactions with real estate and securities.
3. The trustee must be chosen carefully, the success of the entire undertaking depends on it.
4. You will have to pay for the services. Although this is an obvious fact, it is unpleasantly surprising to some.
5. Please note that no one can guarantee your profitability when you transfer securities to management. And if they can, then they are deceivers.