Offshore Trusts Report: Liechtenstein
Characteristics of Liechtenstein Trusts
Some of the characteristics of Liechtenstein Trusts
are as follows:
-
a trustee can be an individual or a corporation or association;
one trustee must be a Liechtenstein-resident individual with
appropriate professional qualifications; trustees have various
specified duties of care towards the trustor and the trust
property; trustees who carry on business as such must keep
an inventory of their trusteeships and must keep each trust's
assets separate from other assets; if trust assets are deposited
with banks they must again be kept separate;
-
trustees are liable for breach of trust to the full extent
of their assets; joint trustees must normally act jointly
and are jointly liable; supervision of the trust is ultimately
under the Court, even if the Trust Deed specifies alternative
supervision;
-
the trustee must keep a schedule of trust assets and update
it yearly, submitting trust accounts as specified in the Trust
Deed or to the Court;
-
the interests of named beneficiaries can be embodied in
trust certificates, which if registered are transferable securities;
-
being a civil law jurisdiction, trust assets are vulnerable
to forced heirship provisions, although there are time limitations
on such claims;
-
in general, there is a limitation of one year on creditors'
claims; the trustee's creditors have no access to the trust
assets; the trustor's creditors have access to trust property
only under certain defined circumstances, one of which is
under law of succession; the beneficiaries' creditors have
access to the trust assets only if the beneficiary has a claim
to payment, and if the trust deed does not bar distraint;
the trust property's creditors have limited access to the
trustee but only to the trust property if the trustee enjoys
specific liability cover from the property.
-
trust documents, including the Trust Deed, can be in any
language.
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