Double-sided trust
The double trust (also referred to as double-sided or double-profit trust ) is characterized by the fact that the trustee acts simultaneously for the conflicting interests of different people.
Usually this construction is used to secure claims. One example is the transfer of collateral to a third party, the double trustee. The persons involved are: the security provider (settlor and debtor of the secured claim), the secured (settlor and creditor of the secured claim) and the double trustee . The relationship between the guarantor and the double trustee is a security trust and the relationship between the secured and the double trustee is an administrative trust. This classification is sometimes seen differently in the literature . The relationship between the guarantor and the secured is not a fiduciary relationship.
Example: Employer uses a fiduciary relationship to secure pension obligations against insolvency
Increasingly, companies - including medium-sized companies - are using contractual trust arrangements (CTA) to secure credit balances and pension obligations against insolvency or to shorten the balance sheet by offsetting pension provisions against plan assets in accordance with IFRS. Different versions of these trust models have been developed in recent years. In the meantime, a preferred model in practice, the double-sided trust , is emerging. The employer (trustor) transfers assets to a trust company on the basis of special contractual provisions. This is either founded by the trustor or the company joins an inter-company trust institution that is now offered on the market by many financial service providers. The basis of the transfer of assets is a trust agreement, from which two essential functions of the trustee usually emerge. On the one hand, the trustee takes on the management and investment of the assets in accordance with the trustor's specifications (administrative trust). On the other hand, the second fiduciary function is determined within the framework of a corresponding contractual agreement, the securing of the assets against access by the company or by creditors of the trustor (insolvency protection). This double task of the trustee contributes to the fact that one speaks of a double-sided trustee.
literature
Hirschberger, Helge: The double trust in insolvency and foreclosure, Cologne a. a. 2005, ISBN 3-452-25987-0
