Amendment and dissolution of the Liechtenstein Trust
In principle, the trust is irrevocable. Withdrawal or revocation by the settlor is only possible if this is expressly provided for in the trust deed.
The trust ends in accordance with the provisions of the trust deed or upon the destruction of the trust assets without replacement or with the consent of all relevant parties or upon expiry of a fixed term of the trust.
Amendment of trust deed
In principle, the trust is irrevocable. Withdrawal, revocation or other amendment by the settlor is only possible if this is expressly provided for in the trust deed.
The trust deed may also provide for its amendment by governing bodies or third parties. Furthermore, under certain circumstances, the district court can make amendments ex officio or at the request of a party. This is the case if the purpose of the trust can no longer be achieved or is expedient to ensure the continued existence of the trust or the trust assets and no other person is responsible for the amendment.
Caution: If the settlor has the right to amend the trust deed or to have it amended or to revoke or liquidate the trust, the trust is regarded as transparent in most foreign jurisdictions with the consequence that the trust assets are assigned to the settlor and the settlor is directly liable for tax.
Dissolution of Liechtenstein Trust
The trust ends in accordance with the provisions of the trust deed or upon the destruction of the trust assets without replacement or with the consent of all relevant parties or upon expiry of a fixed term of the trust.
The trust does not end due to termination or bankruptcy of the trustee or death of the settlor.
Our advice: In the trust deed, arrange the succession of the governing bodies or other parties involved in the event of termination, bankruptcy and death. Name the successors or specify who will appoint these persons, as otherwise the district court will appoint a third party.
If the trust deed does not contain a provision on the utilisation of the trust assets (ultimate beneficiary) in the event of the termination of the trust or if the ultimate beneficiaries have ceased to exist, the settlor or his heirs are the ultimate beneficiaries.
The termination of the trust must be reported to the Office of Justice.
The trust can also be cancelled by order of the district court if the purpose has been achieved or has become unattainable and the trustee does not terminate the trust.
Furthermore, the trust can be cancelled with the consent of all parties involved if the trust deed does not conflict with this.
Trusts established under a will can be revoked by the settlor until his death.
Do you have questions regarding the amendment of a trust deed or the dissolution (liquidation) of a trust? For a non-binding enquiry, please contact us by phone or e-mail or use the contact form at the bottom of this page.
