Published on Jul 25, 2025
Trust or simple partnership to manage family assets
Gazzani Studio
To manage a family estate, Studio Gazzani analyzes both the simple partnership and the trust because they are tools used, but with different characteristics and purposes that often complement each other in a complementary way.
The simple partnership is a corporate form that makes it possible to concentrate the family estate (real estate, shareholdings, investments) in a single legal entity, allowing flexible and participatory management by the partners (family members). It offers advantages of tax transparency and direct control by the partners/managers, making administration and family governance easier, including during generational transfer. However, asset protection is not absolute, since the assets are still attributable to the partners and may be attacked by personal creditors
The trust, on the other hand, is a legal tool that separates the legal ownership of assets (managed by the trustee) from the economic benefit (enjoyed by the beneficiaries). It offers stronger asset protection, shielding assets from legal or enforcement actions, and ensures strict fiduciary management and orderly continuity in generational transfer, bypassing the ordinary rules of succession
A very effective model for the management and protection of family assets consists of the integration of the two tools: a simple partnership is established to actively manage the family assets, and subsequently the shares of this company are contributed to a trust. In this way, one obtains:
Flexible and participatory management of the assets through the simple partnership, with direct control by the family;
Legal protection and segregation of the most strategic assets through the trust, which shields ownership from third-party claims and ensures generational continuity;
Tax benefits arising from the tax transparency of the simple partnership and from more effective succession planning with the trust
To summarize:
Aspect | Simple Partnership | Trust | Integration of Simple Partnership + Trust |
Asset management | Direct and flexible by the partners | Managed in trust by the trustee | Operational management by the simple partnership, family control |
Protection from third parties | Limited, assets can be attacked | High, assets segregated from personal estate | High, thanks to the trust holding the company shares |
Generational transfer | More complex, based on ownership stakes | Orderly and stable, based on constitutive deeds | Orderly, with protection and family governance |
Taxation | Transparent, avoids double taxation | Variable, depends on structure | Optimized thanks to the combination of both |
In conclusion, the simple partnership is useful for the active and flexible management of family wealth, while the trust offers superior legal protection against legal risks and ensures continuity over time. Often the most effective solution is to combine them, relying on experienced professionals to properly structure the asset and administrative architecture.
This combination is particularly suitable – according to Studio Gazzani – for entrepreneurs or families who wish to maintain operational control while robustly protecting their assets from external risks and thereby enhancing family assets
