We offer commercial trust services that enable investors to hold assets in Cambodia, effectively removing legal obstacles. Additionally, our bespoke services assist in protecting your assets from unforeseen circumstances, ensuring a clear separation from your personal wealth. Trusts are also an efficient tool for tax and succession planning.
Under Cambodian law, a trust is delineated as the stewardship and administration of a fund entrusted by a trustee for the advantage of a beneficiary in conformity with the terms of the trust agreement or prevailing regulations, as defined under the recent Prakas.
In essence, it represents the conveyance of assets to an individual or corporate entity for the purposes of oversight, management, and the promotion of benefits, typically achieved through strategic investments. The latest ministerial directive, complementing the foundational Trust Law, identifies two categories of fiduciary overseers-termed trustees-namely, corporate trustee entities and individual trustees.
Regardless of whether the trustee is a corporate entity or an individual, approval from the TR must be secured through formal application. Upon validation of the application, TR issues a two-year license to the trustee, with the possibility of renewal for an additional three years.
The configuration of a trust predominantly hinges on the necessities and goals of the settlor and beneficiaries. According to the updated regulations, one or more trustees can be designated to administer the trust; however, in cases involving multiple trustees, an odd number is mandated by law.
By default, trusts may be established without a specific termination date, yet the maximum lifespan cannot exceed 100 years.
Under the revised protocol, trustees are obliged to commence operations within three months of receiving their TR license. This obliges the settlor to initiate fund transfers into the newly established trust account. It remains possible to replace a trustee, subject to the TR endorsement and notification. Beneficiaries hold a 30-day period to oppose such modifications subsequent to TR's approval. In general, the regulatory conformity of the trustee represents a pivotal facet of the transaction and necessitates meticulous oversight.
In addition to the elevated expenditures and the intricacy associated with procuring funds,
the dissolution of a trust is commonly cited as a principal drawback owing to its intricate
nature as a structural entity.
Cambodian legislation identifies four events that can culminate in the cessation of a trust.
In each instance, the termination of a trust typically entails a complex procedure overseen closely
by the TR. Any residual funds are distributed among the beneficiaries as stipulated in the original
agreement, or, in the absence of a specific directive, equitably among them.
This critical document specifies all the details of the holding property, trustor (client), trust company, trustee, and beneficiary. It is a legally binding document registered with the Trust Regulator.
Land trusts are a smart estate planning tool, offering flexible management and protection for your real estate properties, ensuring peace of mind and smooth transitions for your beneficiaries.
The Collective Investment Scheme (CIS) represents a significant, yet relatively new, way of investing and financing for large-scale development projects in Cambodia.
CCU Trust, in collaboration with CCU Commercial Bank, is delighted to introduce Escrow Account service.
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