Establishment and administration of the Liechtenstein Trust
The trust is created by signing the trust deed. The trust deed must be registered in the commercial register or deposited with the Office of Justice within twelve months at the latest. In principle, the trust is irrevocable. Creditors of the settlor have the same legal remedies as the creditors of a founder. Creditors of the trustee have neither executive nor bankruptcy law access to the trust assets. The trustee manages the trust assets as an independent legal entity and has a full right in rem to the trust property.
Expertise
- Trust establishment Establishment
- Trust Register entry or deposit
- Trust Revocation Withdrawal
- Trust Legal challenges Enforcement against trust assets
- Trust administration
Trust establishment Establishment
The trust is created by signing the trust deed.
The trust deed can be established by a written agreement between the settlor and the trustee – or by a unilateral written declaration by the settlor and a written declaration of acceptance by the trustee – or by last will and testament of the settlor.
It is also necessary to transfer the trust assets to the trustee and to designate the trust as a fiduciary relationship (EXPRESS TRUST). The assets are transferred in accordance with the provisions of property law. The trust deed gives the settlor extensive room for manoeuvre.
The FL Trust is not a legal entity and is not subject to income taxation in Liechtenstein, but only to a flat-rate minimum tax of CHF 1,800 per year.
Trust Register entry or deposit
Only after the trust has actually been in existence for more than 12 months must the trust either be filed for entry in the commercial register or the trust deed deposited with the Office of Justice. Neither entry in the commercial register nor filing are constitutive.
The application for entry of the trust in the commercial register must include the name of the trust, the date of establishment and the duration for which the trust is established and the name, nationality and place of residence of the trustee. Subsequent changes must also be entered. After registration, anyone can obtain an extract from the commercial register with the above details from the Office of Justice.
The extract from the commercial register does not reveal the settlor or beneficiary. The deposited documents (e.g. trust deed, letter of wishes) are not accessible to the public.
Trust Revocation Withdrawal
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. Trusts established under a will can be revoked by the settlor until the settlor’s death.
Trust Legal challenges Enforcement against trust assets
Creditors of the settlor of an FL trust have the same legal remedies as the creditors of a founder. The settlor’s creditors only have access to the trust assets if the settlor himself is a beneficiary of the trust.
As the trust assets are deemed to be third-party assets (special assets), creditors of the trustee have neither executive nor bankruptcy law access.
Trust administration
The trustee manages and utilises the trust assets in his own name as an independent legal entity vis-à-vis anyone. The trustee has a full right in rem to the trust assets and is the owner of the trust assets with all resulting rights.
The trust assets must be managed and utilised with the care and diligence of a prudent businessman in strict compliance with the provisions of the trust deed. The trustee is obliged to provide information and render accounts to the settlor, the beneficiaries and an appointed auditor.
For a non-binding enquiry, please contact us by phone or e-mail or use the contact form at the bottom of this page.
The initial assessment of your request by one of our advisors is free of charge.
LCG Treuhand AG will be happy to draft the trust agreement and take care of the formation formalities for you. On request, we can also act as trustee for the administration of your trust or as protector / controlling body.
