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
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
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
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 8/10/2014 Guernsey's company registry has approved the first ever migration of a foundation from another jurisdiction to Guernsey.
Liechtenstein, Malta Sign DTA Friday 4/10/2013 Liechtenstein's Foreign Minister Aurelia Frick and her Maltese counterpart
George Vella have recently signed in New York a bilateral double taxation agreement
between the two countries in respect of taxes on income and on wealth.
Liechtenstein Congratulated On Successful Tax Policy Thursday 19/9/2013 Standard and Poor's has maintained Liechtenstein's triple A rating,
alluding to a stable outlook and highlighting the fact that the Principality's
fiscal and financial policies have very much contributed to Liechtenstein's
reputation and strength as a safe, reliable, and attractive economic location.
Austria Eyes US FATCA Deal Friday 10/5/2013 Austrian Chancellor Werner Faymann has announced plans to enter into talks with
the US and with the Organization for Economic Cooperation and Development,
aimed at combating tax fraud and tax evasion.
Austria Willing To Negotiate With EU On Banking Secrecy Wednesday 1/5/2013 Austrian Chancellor Werner Faymann and Deputy Chancellor Michael Spindelegger
have recently confirmed Austria's willingness "to participate constructively"
in negotiations between the European Union and third states on an automatic
exchange of banking information.
LGT Headquarters Middle East Business In Dubai Tuesday 19/2/2013 LGT Group, the international private banking and asset management group, owned
by the royal family of Liechtenstein, has chosen Dubai as the headquarters of its new subsidiary, LGT (Middle East) Limited, following regulatory approvals to operate in the Dubai International Financial Center.
Liechtenstein, Austria Close To Tax Agreement Friday 18/1/2013 Liechtenstein’s Prime Minister Klaus Tschütscher has confirmed plans
to conclude a tax package with Austria shortly.
Austria To Agree Swiss-Style Tax Deal With Liechtenstein Tuesday 15/1/2013 During an upcoming working visit to Vienna, Liechtenstein’s Prime Minister
Klaus Tschütscher is due to hold talks with key ministers from the Austrian
chancellery and from the finance ministry, with the discussions focussing on the
"imminent conclusion" of a bilateral tax agreement between the two countries.
Liechtenstein, UK DTA In Force Wednesday 2/1/2013 Following the exchange of relevant notifications, the agreement pertaining
to the avoidance of double taxation and tax evasion in the area of taxes on
income and on wealth between Great Britain and Northern Ireland and the Principality
of Liechtenstein has now entered into force.
Liechtenstein, Austria Eye Swift Conclusion Of Tax Deal Wednesday 12/12/2012 Negotiations between Liechtenstein and Austria on a tax deal aimed at resolving the issue of Austrian citizens' undeclared bank accounts in the Principality are said to be in full swing.