To establish a trust in Liechtenstein, one person – called a settlor – transfers his/her movable or immovable property to another called the trustee, who may take possession and use the properties. Those that are transferred are called trust assets and are held by the trustee for the benefit of other persons called the beneficiaries. Once formed, a trust can be registered with the Registrar of Trusts within 12 months, wherein the information surrounding it will remain confidential. Once the trust is formed, it is considered as an independent entity with regard to third persons that the trustee transacts with. We have specialists in company formation in Liechtenstein who can help you establish a trust.
Formation of trusts in Liechtenstein
Trusts in Liechtenstein are formed through a written agreement called the trust deed. It is what regulates the relationship between the settler, the trustee, and the beneficiaries, whose names may or may not be listed in the instrument. If the trust deed is deposited with the Registrar of Trusts within 12 months from its execution, any information found therein will be confidential and may only be accessed on justifiable grounds. If deposited beyond 12 months, information such as the description of the trust, date of formation, duration of the trust, and the name and address of the settler are registered with the Public Register. Our specialists that open a company in Liechtenstein are also experts in setting up a trust.
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Purpose of a Liechtenstein trust
The formation of a trust in Liechtenstein can be for any purpose as long as it is not illegal and is within the moral standards of society. It can even be for a commercial purpose as long as the trustee performs the obligations provided for under the trust deed. The Persons and Company Law in Liechtenstein – he law regulating trusts – also allows the trustee to accumulate earnings from the holding and use of the trust assets without any limitation. If you set up a company in Liechtenstein as a trust, you will have many options on how to go about your business.
Liability of the trustee in Liechtenstein
A trust in Liechtenstein is a contractual relationship between the settler and the trustee, who can be a natural or juridical person. The trust deed serves as the written contract between them and any breach thereon will make the parties liable. The trustee is liable up to the full extent of his/her assets. If the trustee has any creditor, the latter may not go after any property included in the trust assets.
If you have further questions on how to create a trust, just approach our specialists in company formation in Liechtenstein. They have experience in the formation of trusts.