{"id":4850,"date":"2026-06-26T09:17:51","date_gmt":"2026-06-26T07:17:51","guid":{"rendered":"https:\/\/nm-test.ruhmetc.com\/?p=4850"},"modified":"2026-06-29T16:15:59","modified_gmt":"2026-06-29T14:15:59","slug":"changes-to-liechtenstein-trust-law","status":"publish","type":"post","link":"https:\/\/nm-test.ruhmetc.com\/en\/2026\/06\/26\/changes-to-liechtenstein-trust-law\/","title":{"rendered":"Trust Law Reform: Changes to Liechtenstein Trust Law"},"content":{"rendered":"\n<p class=\"has-text-align-left wp-block-paragraph\"><strong>Liechtenstein Trust Law \u2013 A brief overview<\/strong><br>The reform of Liechtenstein trust law, which comes into force on 1 July 2026, represents the most comprehensive development of the Liechtenstien Trust Law in years. The new provisions apply to newly established trusts from that date but also provide for transitional periods for existing trusts. Charitable trusts must comply with the new requirements by 31 December 2026 at the latest. For existing private trusts, the transitional period ends on 31 December 2027.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\">The Liechtenstein Trust is governed by Articles 897 et seq. of the Law on Persons and Companies (PGR) and in addition to the Liechtenstein Foundation is another key instrument of asset protection and estate planning in Liechtenstein. It offers settlors a wide range of structuring options. Liechtenstein trust law combines elements of Anglo-Saxon common law with the principles of continental European civil law, and thus always held a unique position in the European legal landscape.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\">The appeal of the Liechtenstein trust lies in its high degree of flexibility, which is once again emphasised in the current reform. Settlor can largely tailor the organisation of the trust to their individual needs in particular with regards to the purpose of the trust, beneficiaries structure, Trustee powers, administration of trust assets as well as information rights, making the Trust an ideal vehicle for wealth and estate planning, long-term preservation of family wealth and structuring of asset protection. Its attractiveness is particularly enhanced by Liechtenstein\u2019s tax regime, under which the trust is generally subject only to the minimum corporate income tax of CHF 1\u2019800 per year.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\"><strong>The situation prior to the reform<\/strong><br>Prior to the reform the settlor is traditionally granted extensive private autonomy. Compared with Liechtenstein foundation law however fewer statutory requirements regarding control, accounting and supervision existed. Rights to information and control were previously only partially regulated by law and otherwise specified in the trust instruments or case law. The reform was triggered by the realisation that, in certain trust structures control gaps may arise within the trust governance. This mainly in pure discretionary trusts where no further supervisory bodies had been established by the settlor. The legislature therefore saw a need for action to ensure effective oversight over the administration of the trust property.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\">The reform aims to clarify the structure of supervision and control within trusts, to prevent existing control deficiencies and to increase legal certainty for all parties involved. Thus numerous areas previously governed primarily by private autonomy or practice are expressly determined by law. One key \u00e9l\u00e9ments are the introduction of a person entitled to information as a statutory supervisory body, the clarification of accounting and documentation obligations, strengthening of judicial supervision, and the creation of differentiated regulations for charitable and private-benefit trusts.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\"><strong>Charitable and private-benefit trusts<\/strong><br>Until the reform, provisions of trust law did not&nbsp; contained any explicit statutory distinction between charitable and private-benefit trusts. With the introduction of Article 898a PGR, this distinction is now enshrined in law for the first time. A trust is deemed to be charitable if the trust property serves, wholly or predominantly, charitable purposes or charitable beneficiaries. Private-benefit trusts, by contrast, predominantly pursue private or self-serving purposes or the interests of beneficiaries. Where there is uncertainty on how the trust is to be classified the law now introduced a rule of doubt.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\">The classification of a trust as charitable or private will in future be particularly relevant for supervisory purposes, the obligation to register in the Commercial Register and the appointment of a person entitled to information.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\">The reform also contains various clarifications regarding trust law. For instance, certain forms of trust previously recognised \u2013 in particular, purpose trusts \u2013 are now expressly enshrined in law, and the requirements regarding the content of trust documents are set out in more detail.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\"><strong>Supervision of charitable trusts<\/strong><br>Until the reform, charitable trusts were not subject to any ongoing institutional supervision, as already now provided for charitable foundations. The reform now establishes a statutory supervisory regime with the aim to apply the supervisory model already established for charitable foundations to charitable trusts to a large extent.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\">In future, charitable trusts will be subject to the supervision of the Foundation and Trust Supervisory Authority (STIFTA). The STIFA is an existent authority expanding its duties to also include charitable trusts. STIFTA also assumes the default role of the party entitled to information in relation to charitable trusts by operation of law. The rights to information, control and supervision are exercised directly by the authority. Furthermore, charitable trusts must in future be entered in the Commercial Register. The previous option of merely filing the trust deed no longer applies.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\"><strong>Introduction of the information officer as a key control mechanism<\/strong><br>The most significant practical change in the Trust reform is the introduction of the Information Officer (Informationsberechtigter) for private-benefit trusts. Until now, according to relevant case law, rights of information and control existed primarily only in favour of beneficiaries entitled to benefits (but not in favour of the much more common discretionary beneficiaries) provided the settlor had expressly provided for this in the &nbsp;trust documents. This regime enabled gaps in oversight, particularly in the case of discretionary trusts or complex beneficiary structures. The introduction of the Information Officer intendsto ensure that the Trustee\u2019s management activities are subject to effective and continuous oversight.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\">The legislator generally leaves it to the settlor to determine who is to assume the role of the Information Officer. Potential candidates for this role include, in particular, the settlors themselves, one or several beneficiaries, other bodies such as a protector or advisory board, an auditor or other natural or legal persons designated by the settlor (such as trusted individuals and\/or advisers).<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\">In principle, the Information Officer should be independent of the trustee and have sufficient expertise in legal matters as well as financial understanding. However, the reform allows the settlor to adapt these requirements in the trust documents or to waive them altogether.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\">In addition, a successor of the Information Officer must be designated in the trust documents to ensure that the supervisory function can be performed on a permanent basis.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\"><strong>Comprehensive rights to information and control<\/strong><br>The Information Officer is granted comprehensive statutory rights to information, disclosure and control. They are entitled to all information and documents necessary for the performance of their duties, as well as to an annual financial statement from the trustee.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\"><strong>Audit and reporting obligations<\/strong><br>The Information Officer is obliged to verify once a year whether the trust property is being managed and utilised in accordance with the Trust documents. The annual review does not constitute a comprehensive financial audit of the trust comparable to the audit of annual accounts by an audit firm, but is a compliance review intended to verify whether the Trustee is adhering to the provisions of the Trust documents and thus to the wishes of the Settlor as determined in the Trust deed. If the Information Officer identifies breaches of duty or risks to the trust property, it is obliged to take steps to remedy. If the deficiencies are not remedied or if the Trust property is at risk, it must report to the Liechtenstein District Court. Exempt from this annual review obligation are cases in which the settlor or all beneficiaries hold the position of the Information Officer.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\"><strong>Strengthening judicial supervision<\/strong><br>The reform also regulates the participation rights in judicial supervisory proceedings much more clearly. Previously, the procedural rights of persons involved in a Trust were determined only in specific instances. The reform now creates an explicit legal basis for the participation of key functionaries in judicial supervision proceedings.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\">Based on the reform, the settlor, the trustee and the Information Officer are explicitly granted standing as party.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\">Further the possibility to obtaining \u00abBinding Directive\u00bb is now explicitly regulated by law, which is comparable a blessing proceedings in common law Trusts. In cases of doubt or in the event of conflicts between co-trustees, Trustees may apply to the Regional Court to obtain a binding directive. Compliance with such Binding Directive then exempts the Trustee from liability (provided of course that all relevant facts have been disclosed to the Court).<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\"><strong>Transitional period for existing Trusts<\/strong><br>The transitional provisions are of particular practical relevance, as they affect all existing Trusts. Existing structures must therefore be brought in line with the new legal requirements within specified time limits.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\">Charitable Trusts: A six-month transitional period applies to existing charitable trusts, i.e. until 31 December 2026. Whilst charitable trusts previously filed with the authorities were not subject to official supervision, they must in future be entered in the Commercial Register and notified to the Foundation and Trust Supervisory Authority (STIFTA).<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\">Private Benefit Trusts: A longer transitional period of 18 months applies to existing private-benefit trusts, i.e. until 31 December 2027. Within this period, the trust documents must be brought in line with the new legal requirements and at least one Information Officer and its successor must be appointed.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\">The reform enables the Settlor to amend the trust documents to comply with the new legal requirements, even if the existing trust documents do not expressly provide for any amendment rights. Primarily the amendments should be made by the settlor. If this is not possible &#8211; such as in case the settler has demised, is incapacitatated or cannot be contacted \u2013 the Trustee may make the necessary amendments. As this involves an intervention in the Trust structure originally established by the Dettlor, such amendment generally requires the approval of the Court in non-contentious proceedings. If it is not possible to appoint an Information Officer the trustee must, as a secondary measure, apply to the Court for the appointment of an audit body as the Information Officer.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\"><strong>In summary<\/strong><br>The reform represents the most comprehensive development of Liechtenstein Trust law in years, introducing a strengthened governance and control framework to enhance oversight, transparency and accountability while preserving the flexibility of Liechtenstein Trusts.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\">The changes will require existing Trusts to be reviewed and adapted. Given the applicable transitional periods, an early assessment of existing Trust structures and timely implementation of any required adjustments is recommended.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\">Niederm\u00fcller Attorneys at law has an experieced Private Client team regularly advising on the setup and restructuring of Foundations and Trusts as wealth planning and asset protection structures. The team can provide comprehensive advice on how to bring existing trust structures in compliance with the new legal requirements.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\">Further given that Niederm\u00fcller Attorneys is an entirely independent lawfirm with extensive expertise in Foundation and Trust Law matters, we can act as Information Officer in case this is desired by the Settlor.<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\">06 | 2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Liechtenstein Trust Law \u2013 A brief overviewThe reform of Liechtenstein trust law, which comes into force on 1 July 2026, represents the most comprehensive development of the Liechtenstien Trust Law in years. The new provisions apply to newly established trusts from that date but also provide for transitional periods for existing trusts. Charitable trusts must [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[56,18,85,84],"tags":[],"class_list":["post-4850","post","type-post","status-publish","format-standard","hentry","category-business-law","category-liechtenstein-en","category-private-clients","category-succession-planning"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Trust Law Reform: Changes to Liechtenstein Trust Law - Niederm\u00fcller Rechtsanw\u00e4lte<\/title>\n<meta name=\"description\" content=\"The Liechtenstein Trust Law reform, effective from 1 July 2026, introduces new governance, supervision and compliance requirements for trusts. 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