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.
Trusts may be set up under foreign law, but may not have more favourable treatment than would apply under Liechtenstein law. Liechtenstein law applies to a foreign trust if the trustee, or more than half of the trustees, are resident in Liechtenstein, if the trust property is in Liechtenstein, or if the Trust Deed says so.
Unlike common law trusts, Liechtenstein trusts can accumulate income, and are subject to no rule against perpetuities. The trust law generally is extremely flexible as regards the powers of settlors (trustors).
As long as the original trust documentation is deposited with the Registrar of Trusts within 12 months, there is no public information about the trust, and later trust documention, eg naming beneficiaries, does not have to be deposited; the level of confidentiality is therefore very good. Trust documents can be in any language.
Guernsey Welcomes Migration Of First Foreign Foundation Wednesday 8/10/2014Guernsey's company registry has approved the first ever migration of a foundation from another jurisdiction to Guernsey.