Much is said about trusts today : especially by corporate trustees and continental-trained lawyers : yet much of it misses the essence of what a trust really is.
For many, a trust has become a compliance product, something to be administered within the framework of regulation and reporting. For others, particularly within civil law traditions, it is seen as a technical legal institution, to be translated and classified as if it belonged neatly within codified categories.
Both views lose sight of what makes the trust unique. A trust is not just an instrument of wealth management or a foreign legal curiosity. It is a relationship of duty and confidence, sustained through ethical conduct, fiduciary restraint, and continuity over time.
The Lost Art of Trusteeship
Working between English chambers and traditional Spanish bufetes, I have witnessed firsthand how the essence of trusts becomes diluted when reduced to mere technicalities. The Anglo-Saxon world gave birth to the trust not as a regulatory compliance tool, but as a profound expression of human relationships : one person’s willingness to hold property for another’s benefit, bound not merely by contract but by conscience.
This relationship transcends the mechanical application of trust law. It lives in the moments when a trustee must make decisions that no deed or statute anticipated. It breathes in the quiet understanding between generations, where beneficiaries learn to trust not just in legal protections, but in the character of those who hold their future in trust.
The Spanish legal tradition, with its emphasis on clear codification and direct ownership, initially struggled to comprehend this Anglo concept. Yet in our practice, we have found that most families, particularly those with generational wealth, intuitively understand the trust’s deeper purpose even when their legal system does not formally recognise it. They grasp that true wealth preservation requires more than legal structures : it demands the cultivation of wisdom, restraint, and responsibility across generations.
Beyond Compliance: The Fiduciary Heart
Modern trust administration often reduces the trustee’s role to a series of checklist items: file returns, distribute income, maintain records, report to beneficiaries. While these duties matter, they represent only the skeleton of trusteeship, not its soul.
The true trustee operates in the spaces between written obligations. When market conditions change suddenly, when family dynamics shift unexpectedly, when beneficiaries face challenges that drafters never contemplated : these are the moments that reveal whether one is merely an administrator or a genuine fiduciary.
This distinction becomes particularly apparent when working across Anglo-Spanish legal boundaries. English law recognises the trustee’s inherent discretionary powers, understanding that rigid rules cannot anticipate every circumstance. Spanish law, preferring certainty and direct relationships, initially resists this flexibility. Yet practical experience demonstrates that even within civil law frameworks, the most effective wealth preservation strategies require someone willing to exercise judgment, show restraint, and act with long-term vision.
The Invisible Bond
Perhaps most misunderstood is the nature of the relationship between trustee and beneficiary. It extends far beyond the contractual and approaches the sacred. This becomes evident only through practice, particularly when observed across multiple generations.
I have seen beneficiaries who never doubted their trustee’s commitment, despite having minimal direct contact. They possessed an intuitive understanding that their interests were being protected by someone who viewed their responsibility as more than professional obligation. Conversely, I have witnessed technically compliant trustees who inspired only suspicion and litigation, despite perfect adherence to documented duties. I have also seen disgruntled inheritors litigating against trustees without understanding the trusteeship intent. Trusts developments are no different from any other social enterprise.
The invisible bond between trustees, beneficiaries and settlor cannot be manufactured through legal drafting or regulatory requirements. It emerges through consistent ethical conduct, transparent communication, and genuine care for beneficiaries’ long-term welfare. It grows stronger when trustees demonstrate they understand their role as temporary custodians of something larger than themselves.
The Continental Challenge
Working within Spanish legal frameworks has sharpened my understanding of what makes Anglo trusts unique. Civil law systems excel at providing clear, predictable rules. They offer certainty about property rights, succession, and contractual obligations. Yet they struggle with the trust’s fundamental innovation: the beneficial splitting of ownership itself.
When Spanish lawyers encounter trusts, they often attempt to translate them into familiar categories : mandate, donation, foundation, or corporate structure. While these alternatives can achieve similar practical outcomes at times, they lack the trust’s essential characteristic: the fusion of property rights with fiduciary obligation in a single relationship.
This is not a failure of Spanish law, but rather a reflection of different jurisprudential philosophies. The Anglo tradition embraces ambiguity and relies on equity to resolve conflicts. The Spanish tradition prefers precision and codification. Neither approach is superior, but each produces different possibilities for structuring human relationships around property.
Stewardship Across Generations
The true nature of a trust can only be understood in practice, over generations. This becomes particularly clear when observing family trusts established decades ago, where the original settlor’s intentions must be interpreted and applied to circumstances no one could have foreseen.
Effective trustees develop what might be called “generational thinking” : the ability to balance present needs against future possibilities, to preserve capital while allowing for growth, to maintain family unity while respecting individual autonomy. This skill cannot be taught through compliance manuals or legal education alone. It emerges through experience, wisdom, and a deep appreciation for the responsibility one bears.
In our Anglo-Spanish practice, we often work with families spanning multiple jurisdictions and generations. The challenges are complex: different tax regimes, varying legal frameworks, diverse cultural expectations. Yet the fundamental principles remain constant. Trust works when trustees understand their role as temporary custodians of something permanent : not just assets, but family values, relationships, and aspirations.
When Documents Run Out of Words
Legal documents, no matter how carefully drafted, eventually encounter situations their language cannot address. This is when the difference between administration and stewardship becomes most apparent.
An administrator follows instructions. A steward interprets purpose. When faced with unforeseen circumstances, the administrator seeks additional documentation or legal clarification. The steward asks what the settlor would have wanted, what serves the beneficiaries’ best interests, and what preserves the trust’s fundamental purpose.
This distinction becomes crucial in cross-border contexts. Spanish beneficiaries of English trusts may not initially understand the discretionary powers their trustees possess. English settlors establishing structures for Spanish tax residents may not appreciate the civil law preference for direct, predictable relationships. Success requires trustees who can navigate not just legal requirements, but cultural expectations and family dynamics across jurisdictions.
The Enduring Foundation
Those who reduce trusts to technical instruments or compliance products fundamentally misunderstand their nature. A trust succeeds not because of perfect legal drafting or regulatory adherence, but because it creates sustainable relationships built on duty, confidence, and ethical conduct.
This understanding becomes particularly important as globalisation increases the complexity of family wealth structures. Families with assets across multiple jurisdictions need more than technical compliance : they need trustees who understand that their role transcends national boundaries and legal categories.
Working within the Anglo-Spanish legal landscape has taught me that the trust’s true essence lies not in any particular jurisdiction’s formal recognition, but in the human capacity to create relationships of profound responsibility and enduring commitment. The challenge for modern practice is ensuring that this essence survives the increasing pressures of regulation, commercialisation, and technical complexity.
True trusteeship remains what it has always been: one person’s willingness to hold something precious for another’s benefit, bound not merely by law but by conscience, sustained not through documentation but through ethical conduct, and proven not in years but across generations.
For more insights on navigating complex cross-border legal arrangements, explore our trusts and international tax resources
