Trusts Restructured

(Year 234, Winter) This Fall People Chamber debated new restrictions to private trusts, iniated by Ministry of Trades & Taxes. Existing trust owners involve the royal House of Luxe-Hamper, as well as quite a few noble Houses. According to the revised restrictions, some of the latter will now lose their right to organize their possessions in a Trust.

Minister Fanny Silverbone, Ministry of Trades & Taxes. Here from the LEFT party's office at Council House.

Most trusts are very old and were originally introduced to serve a heritage mission: It was a logical way to secure that the new Head of House would keep the essential possessions without needing to buy out siblings and other heirs. To many main heirs this could only be done by taking up big loans or splitting up ownership. Trusts were originally invented by the royal House and before Year 50 it was common with the wealthiest Houses of aristocracy. Each trust functions like a small company with a Board of 3 persons, lead by Head of House with a double vote. The two other core members normally represent other family branches in order to protect the values on behalf of future generations.

It started with the trust just owning the family's main estate including some valuable old heirlooms. Over the years more values were added, such as land properties, jewelleries, and stocks.

- The Ministry has been working on this ever since the regional reform took place a couple years back, says Silverbone. - The suggested changes were approved by the Cabinet as well as all three chambers.

So, what are the changes?

1. - A  Trust must own a total value of minimum §1,000,000.
2. - A Trust can have just one owner. Owner must be a person and not a company.
3. - The Trust board must have 3 members.
4. - The Trust can not own stocks.

So, how will this all affect the existing 14 trusts?

1. Worth of minimum §1,000,000

This is the most controversal change, as it will affect quite a few trusts. Crafthole Trust, Tickertop Trust, and Noble Students Trust are all worth way less than §1,000,000. Brindleton Trust and Gloom Trust are just below the limit, but it should only take them minor adjustments to reach the limit.

Trusts are juridic and financial instruments, being the formal owner to a collection of given items. Therefore, all facts are 100% official and can not avoid being lookeed into. Their value will be easy to look up in the Yellow Pages.

There were varied opinions about this, though. RIGHT party wants no such minimum value but would accept §500,000 or that Truts were restricted to the royal House and the 8 high nobility Houses. LEFT party want a much higher minimum value (§5,000,000) in order to limit a trust to the royal House - for now.

2. Just one personal owner

The Trust must be registered with official autorities (approved by all three constitutional chambers). Yellow Pages will list major possessions as well as ownership and employees.

Aristocratic trusts already are owned by Head of House, so no cange in ownership for them. In fact, this statement only affects the Noble Students Trust, that currently has 2 owners. Further on those owners are two other trusts, so adjustments will be in order anyway, as the owners are not personal, and because a trust can no longer own stocks or other trusts (#3). The two owners must find other ways to organize the Noble Students Trust.

3. The Trust board

Trust must have 3 board members, including the legal trust owner. The owner has a double vote and leads the board.

4. Trusts can no longer own stocks

Trusts are supposed to own real estate and valuable heirlooms. Today several trusts also own stocks and they will now need to transfer those possession to individual owners. It will be up to each trust's core group to find personal owners, sharing them between the family branches represented on the core, might be a solution. Just because Head of House is the sole trust owner due to i.e. tax situation, doesn't mean the person shall keep the same values as personal possessions, but the situation will naturally vary a bit from trust to trust. Each trust must find their way, approved by the trust's board.

Founding a stock company issuing stocks, just in order to replace a trust, is not recommended by People Chamber, as a company ought to have a business idea. The company would need to work actively with i.e. investments and hire minimum one Manager. It would in most cases complicate the case instead of solving it.

Rossie Trust, Meadows Trust, Myshuno Trust, Brindleton Trust, Verde Trust, and Noble Students Trust, are all trusts currently owning stocks.

MIDDLE party wants to add a 5th point saying that each trust can own one estate, only. But this has been disapproved by both RIGHT and LEFT, and is not part of the changes.

Rebekah Starks, Minister of Health & Welfare and leader of MIDDLE party.

- We respect the heritage side of this, but a main heir should not depend on a trust to inherit more than the family's main estate. If they don't have the economical muscles for keeping additional estates on one hand, we think they should rather let go of those extra houses.

Changes were approved by all three chambers, an d will take effect from Year 235. Anyone affected will then be allowed one year to make the required adjustments.