THE HAGUE CONVENTION ON THE LAW APPLICABLE TO TRUSTS AND TO THEIR RECOGNITION

Abstract

In modern society, characterized by the increasing complexity of economic relations, it is easy to imagine a situation in which institutions existing in one legal system do not coincide with those adopted in another legal system, and at the same time are used by its subjects. According to the analysis of foreign legislation, increasing development among the usual organizational legal forms of legal entities is received by the trust. And there is a reason. Trust is a special institution that provides extremely flexible mechanism for managing the property that can save individualistic beginning. Currently the trust becomes one of the most attractive investment vehicles and that is why so many scientists, politicians and economists are paying more attention to it. Therefore the analysis of the Hague Convention on the law applicable to trusts and their recognition are of great importance. The Convention is somehow a compromise between the two legal systems and constitutes a very convenient way to bring trust into the civil law states’ legal systems. It appears that the research of main trust characteristics might be relevant for our country as well, because sooner or later Russian legislator must decide whether to permit the trust in the domestic legislation.