CZECH REPUBLIC: When Trusts Meet Marriage: Consent, Limitation and Good Morals in Czech Law

Abstract This article examines the intersection between the regulation of the joint property of spouses and the use of trusts and foundations (including foundation funds) under Czech law. Drawing on recent court decisions, it analyses three issues: (i) the conditions under which an urgent legal interest exists in a declaratory action concerning assets removed from the joint property of spouses; (ii) the mechanism of relative invalidity under the Civil Code, including the running of the 3-year subjective limitation period vis-à-vis both the other spouse and third parties; and (iii) the role of the corrective measures of good morals in the establishment and administration of trusts and foundations. The study systematises partial conclusions of Czech case law and formulates practical starting points that may serve as a reference for foreign discussions on the protection of spouses when structures involving trusts and foundations or foundation funds are used.