Trusts, seizures, and beneficial owners: what the latest decision of the Court of Cassation changes for companies and investors.

A context marked by increased vigilance against tax fraud

Tax fraud and money laundering are at the heart of economic and judicial concerns. French and European authorities are ramping up controls and adapting their tools to combat complex financial arrangements. This tightening directly affects not only large fortunes but also entrepreneurs, startup leaders, and investors who use legal structures such as trusts, investment funds, or international holdings.

On September 24, 2025, the Court of Cassation issued a landmark decision (Cass. crim., n°25-80.120) in a case involving the sale of a Parisian real estate portfolio for over one billion euros and the criminal seizure of 94 million euros. This decision perfectly illustrates the current stakes: understanding how jurisdictions approach the notion of "beneficial owner" and what practical consequences this may have on the legal security of economic actors.

What the Court of Cassation ruled

In its ruling, the high court recalled three essential principles that go well beyond the specific case.

1. The principle of enhanced adversarial proceedings

When a court modifies the basis of a criminal seizure (for example, changing from a "value" confiscation to a "property" confiscation), it must respect the adversarial principle provided for in Article 6 §1 of the European Convention on Human Rights. In practice: one cannot change the rules of the game mid-course without offering the parties the opportunity to debate.

2. The status of "beneficial owner" is not enough to demonstrate full ownership

Being designated as a beneficial owner of a trust does not automatically allow one to contest a seizure or claim free disposal of the assets. The judge must analyze the actual functioning of the trust: who makes the decisions? who actually controls the assets? Practical example: a French entrepreneur may be a beneficiary of a foreign trust but have no decision-making power over the management of the funds. In the event of a dispute, this simple status does not allow them to present themselves as the true owner.

3. Judges must exercise rigorous control over the justification of seizures

The Court required a precise justification when it comes to dismissing the good faith of a third party or assessing the proportionality of a seizure, especially if multiple seizures are already affecting the same assets. Consequence: more transparency and procedural requirements weighing on the judicial authority, but also increased complexity for economic actors who must prove their good faith.

Why this decision directly interests entrepreneurs and investors

While this decision targets international wealth arrangements, its lessons are useful for startups, scale-ups, innovative business leaders, and investors:

• Anticipate controls: in the face of increasing tax and financial audits, the establishment of international structures must be thoughtful, documented, and transparent.

• Secure legal arrangements: using a trust, foundation, or international investment structure without mastering the legal implications exposes one to asset blockages.

• Evaluate the notion of beneficial owner: a concept used in tax law, business law, and banking compliance. But as the Court reminds us, it does not automatically equate to full economic ownership.

• Consider the proportionality of seizures: investors and entrepreneurs must integrate the risk of multiple seizures on strategic assets and plan for rigorous traceability.

How to secure your entrepreneurial projects and investments

In light of these developments, several best practices can be implemented with the support of a corporate legal advisor:

Audit your investment structures

Whether you have established a holding company, invested through a foreign fund, or are considering using a trust, it is essential to analyze governance and documentation. The goal is to ensure that the distribution of powers truly reflects your intentions and withstands subsequent judicial scrutiny.

Document tax transparency

For a startup as well as for an established group, it is crucial to demonstrate the compliance of arrangements with business law and tax law. This involves preparing clear justifications for the administration and banks.

Anticipate seizure risks

A criminal seizure can occur even before a final conviction. Entrepreneurs must therefore plan in advance for contractual protection clauses, identify risks of asset blockage, and, if possible, diversify structures or bank accounts.

Surround yourself with the right interlocutors

Business lawyers, tax specialists, intellectual property experts, and labor law advisors: comprehensive support helps avoid resolving a problem in one legal area that creates fragility in another.

A lesson for startups and leaders: contractual and tax prudence

Beyond trusts and criminal seizures, this ruling underscores a more general message: economic justice is becoming more demanding in terms of proof, proportionality, and transparency. For startup leaders and growing entrepreneurs, this should translate into:

• a rigorous contractual approach (e.g., structuring the shareholders' agreement, securing fundraising),
• anticipating governance and actual asset ownership issues,
• increased vigilance regarding the notions of beneficial owner and effective control.

In other words, legal security is no longer just a guarantee but a true lever of trust and credibility with investors, partners, and regulatory authorities.

Conclusion: turning constraints into opportunities

The decision of September 24, 2025, invites entrepreneurs, investors, and leaders to rethink how their legal structures are set up and governed. What may seem like an additional constraint is, in fact, an opportunity: to strengthen the robustness, transparency, and credibility of their projects.

At PRAX Avocats, we support startups, businesses, and investors in structuring their projects, integrating these new requirements with a pragmatic and tailored vision. Anticipate, understand, and secure: this is the key to transforming law into a strategic asset.

Contact the firm for clear, personalized support tailored to your entrepreneurial ambitions.