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Answer by Quassnoi for How to set up passive income from investments for children?

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In Russia, Mr. Leopold would draft a will and specify that he wants to leave some or all of his assets to an inheritance fund (наследственныйфонд):

ГКРФСтатья 123.20-8. Созданиенаследственногофондаиуправлениеим

Послесмертигражданина, которыйпредусмотрелвсвоемзавещаниисозданиенаследственногофонда, такойнаследственныйфондподлежитсозданиюпозаявлению, направляемомувуполномоченныйгосударственныйорганнотариусом, ведущимнаследственноедело, сприложениемкзаявлениюсоставленногоприжизниуказанногогражданинаегорешенияобучреждениинаследственногофондаиутвержденногоэтимгражданиномуставафондаипослеегосозданияпризываетсякнаследованиюпозавещаниювпорядке, предусмотренномразделом V настоящегоКодекса.

The inheritance fund is a non-commercial organization (НКО) that would be incorporated by the notary handling Mr. Leopold's probate case (наследственноедело) upon his death, according to the instructions he would give to the notary certifying the will.

Upon incorporation, the fund would accept the inheritance and (hopefully) manage it according to the instructions given by Mr. Leopold.

The fund is a heir at will (наследникпозавещанию), so if Mr. Leopold is survived by heirs at law (наследникипозакону) eligible for a mandatory share of the estate (обязательнаядолявнаследстве) — that is senior, disabled or underage spouse, parents, children, or dependents — the fund will only receive what's left after carving out their legally mandated shares in the estate.

This is a relatively new (to Russia) instrument, so I'm not sure how well it works in practice, although I know someone who told me they've set it up.


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