In the life of family businesses, unexpected changes are inevitable (e.g. divorce, generational transition, death, conflicts between business partners), and without a pre established legal and economic framework, these events may even jeopardize the operation of the business. A family wealth strategy provides a tailored solution to these challenges: a carefully designed legal, financial, and business structure that protects assets, ensures business continuity, reduces conflicts, and supports long-term growth. (family trust structures, shareholders’ agreements, wills, marital property agreements, and support for generational transitions)
Family Trust Asset Management:
Concept and legal framework: (Trust arrangements have been part of Hungarian law since 2014. The settlor separates all or part of their assets and entrusts them to a trustee for a defined future purpose, for the benefit of designated beneficiaries.
Why it has become increasingly relevant: In practice, uncertainties of the 2020s (such as the pandemic and geopolitical tensions), together with the generational transition challenges of businesses established in the 1990s and 2000s, have significantly increased interest in such structures.
Wealth planning advantages: A flexible instrument that can function as a form of “dynamic testamentary planning,” allowing the settlor to determine in advance who will benefit from the assets, when, and under what conditions. In addition, when applied in good faith, managed assets may enjoy enhanced protection against ordinary creditor claims.
Parties and tax considerations: The structure involves three key parties: the settlor, the trustee, and the beneficiary. In certain cases, tax advantages may also arise (e.g. corporate tax exemption on financial yields or more favorable taxation of share transfers under appropriate conditions), therefore careful structuring with professional advice is essential.
Syndicate Agreement
A syndicate agreement is an agreement between the owners (members/shareholders) of a company, which sets out the most important rules of the company’s operation and the cooperation between the owners beyond the statutory framework. It typically regulates issues such as decision-making and veto rights, management and control, dividend policy, financing, as well as the conditions for the transfer of participations (e.g. pre emption rights, drag-along/tag-along). It is particularly useful upon the entry of an investor, in the case of multiple owners or during generational transition, as it addresses potential conflicts in advance and makes the rights and obligations of the parties predictable. When properly drafted, it protects the interests of both minority and majority owners and significantly reduces operational risks and the likelihood of future legal disputes.
Support of Generational Changes
Generational transition is one of the greatest challenges for family businesses, which, without proper planning, carries significant business and, in certain cases, corporate governance and family risks. A consciously designed legal and ownership structure helps to arrange in advance the order of succession, the managerial and ownership roles, as well as the relationships between family members and, where applicable, managers within the company structure. Our objective is to ensure the continuity of assets and the business, that the transition takes place smoothly, and that generational change represents not uncertainty but long-term stability and growth potential.
Will, Matrimonial Property Agreement
The long-term stability of a family business largely depends on how well the family prepares for unexpected life events, particularly as generational transition approaches. A family wealth strategy integrates this conscious planning, with key elements including a professionally drafted will and a marital property agreement, both serving asset protection and conflict prevention. A will helps avoid fragmentation of ownership and management due to statutory inheritance rules and prevents prolonged probate proceedings from disrupting operations. A marital property agreement ensures that even in the event of divorce, the unity and integrity of the business remain protected within the family. These instruments do not reflect distrust, but rather responsible planning: they ensure smooth wealth transfer, clear ownership structures, and long-term business stability.
