Trust, Beneficial Owner, and Criminal Seizure: The Court of Cassation Recalls an Essential Evidentiary Requirement

In a ruling dated 24 September 2025, the Criminal Division of the French Court of Cassation provides an important clarification on the concept of the beneficial owner of a trust.

The case concerned an individual suspected of indirectly holding substantial real estate assets in France through a chain of foreign companies, a trust, and a life insurance contract. A criminal seizure of over 94 million euros had been ordered on the proceeds from the sale of a Parisian building.

The Court of Appeal had upheld the seizure, considering that the individual, as the beneficial owner of the trust and the insured person under the life insurance contract, should be regarded as the ultimate economic beneficiary of the entities concerned.

The Court of Cassation quashes this analysis

It holds that the mere status of beneficial owner is not sufficient to demonstrate that the person has free disposal of the assets placed in the trust.

Why? Because the concept of beneficial owner, particularly within the meaning of Article 1649 AB of the French General Tax Code, is broad: it may refer to the settlor, the trustee, the beneficiary, or even the protector of the trust. It cannot therefore, by itself, establish actual economic control.

The judge must concretely demonstrate that the person is the true economic owner of the assets.

This requires an analysis of the actual functioning of the trust and the interposed companies:

• Who decides?
• Who controls?
• Who disposes of the assets?
• Who actually benefits from the funds?

Why this ruling matters

This decision is particularly significant for cases involving international taxation, money laundering, and criminal asset seizures.

It recalls a simple yet fundamental idea: free disposal of an asset is not presumed. It must be proven.

For executives, family offices, investors, and groups holding assets through international structures, this ruling underscores a key point: wealth structuring must not only be legally organised, it must also be documented, coherent, and defensible in the event of an audit or litigation.

In an environment where tax authorities and judicial bodies are increasingly scrutinising the economic reality of arrangements, anticipation is decisive.

Our firm assists its clients in analysing, securing, and defending their wealth and international structuring, in order to identify areas of risk before they become subjects of litigation.