What does it really mean to be a good trustee in a world where trust itself is being redefined?
At the end of November, Affinity was in Prague for the annual STEP Czech and Slovak Chapter Conference, an event we were proud to sponsor and speak at. This year’s theme, Fiduciary Responsibility – How to be a Good Trustee, wasn’t just a technical discussion it was a deeper exploration of what trusteeship means in an era of global uncertainty and shifting legal landscapes.
The STEP Czech and Slovak branch is relatively young, having launched in 2024, in the year that marked the tenth anniversary of the Czech Republic introducing its trust legislation. This milestone reflects the progress the private wealth industry has made in the region over the past decade. In a civil law jurisdiction, the concept of a trust (In Czech, known as a svěřenský fond) remains unfamiliar, and the legislation is still largely untested. For families and advisers, this creates both challenges and opportunities. And that’s where Affinity steps in.
As one of Jersey’s leading independent, owner-managed fiduciary firms, we bring extensive experience from a jurisdiction that has set the global standard for trust services. Jersey trusts are proven, robust, and internationally recognised. For Czech families, they offer clear advantages:
- Asset protection against political or economic volatility
- Succession planning that secures family legacies for generations
- Tax neutrality for efficient wealth management
- Confidentiality in an increasingly transparent world
These benefits are not theoretical. Affinity is already trusted by Czech families. Two of our directors act as personal trustees for a svěřenský fond on behalf of our Czech clients, a practical example of how our expertise translates across borders.
But trusteeship today is about more than technical compliance. It’s about foresight. It’s about asking: How do we protect wealth in a world where sovereignty can be challenged overnight? By transferring ownership of assets outside the Czech Republic, families can create a layer of security that goes beyond domestic legislation.
Currently, assets settled by Czech tax residents into non-Czech trusts attract a 15% withholding tax. While this can be mitigated with careful planning, we’re working on something transformative: an ambitious project with the Czech tax authority to achieve parity between Jersey trusts and svěřenský fonds. If successful, this would remove withholding tax altogether, making Jersey trusts an even more compelling option for Czech families.
This isn’t just about tax. It’s about choice. It’s about giving families the flexibility to adopt structures that are globally recognised and future-proof. It’s about shaping the next chapter of fiduciary services in Central Europe, and Affinity is leading that conversation.
As trust legislation evolves, so does the responsibility of trustees. We combine global expertise with a personal approach, ensuring our clients benefit from solutions that are both sophisticated and practical.
Because trust isn’t just a legal arrangement it’s a commitment to safeguarding what matters most. And that’s a responsibility we take seriously.
Have questions or want to learn more?
Contact Dan:
📞 +44 (0)1534 850463
📧 danogorman@affinitypw.com
