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Over the past decades, Luxembourg has shown a high motivation to recognize the Trust even though it is a common law legal instrument. This motivation comes from the facts that Luxembourg has attracted assets from all over the world and it needs to be flexible with foreign legal instruments in order to continue to be attractive. Therefore, the attempts of Luxembourg to recognize the trust have started very early.
The first step was taken by Luxembourg judges. They made an attempt to reconcile the Trust with known principles under Luxembourg law. With this aim, they consider the trustee as an agent and applied rules on agency agreement. However, this approach was not fully satisfactory. For instance, procedural issues emerged when the trustee wanted to act to...
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