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Trusts, as they are commonly known in Anglo-Saxon law, do not exist in the same form within Swedish law. In Sweden, including Örebro, the concept of a trust is not codified, and Swedish courts may find trusts established under foreign law problematic to enforce or interpret. Instead, Swedish law features comparable arrangements such as foundations ("stiftelser") and the management of third-party assets through fiduciary relationships, which can sometimes serve similar purposes as trusts. If you have interests or assets in Sweden and are considering trust-like arrangements for estate planning, inheritance, asset protection, or charitable purposes, it is essential to understand how Swedish law addresses your goals differently than jurisdictions with traditional trusts.
Even though trusts in the Anglo-American sense are not widely recognized in Sweden, including Örebro, many individuals and families seek legal advice when dealing with:
In such situations, an experienced Swedish lawyer can help you understand the limitations and alternatives under local law, safeguard your interests, draft compliant documents, and navigate the legal system effectively.
Swedish law governs how assets are managed, inherited, and distributed in Örebro and throughout the country. The key legal structures relevant to trusts include:
If you are a foreign national or dealing with cross-border assets, it's crucial to seek advice, as Swedish courts may not recognize the legal effects of foreign trusts, especially regarding asset protection or inheritance.
A trust, as commonly defined in English law, is not recognized in Sweden. Instead, similar outcomes may be achieved through foundations, wills, or contractual arrangements.
While you cannot set up a traditional trust under Swedish law, you can establish a foundation or use testamentary dispositions to specify how your assets should be managed and distributed.
A foundation is an independent legal entity with its own rights and obligations, created to serve a specific purpose. Unlike trusts, beneficiaries in a foundation do not have property rights in the assets, and the foundation is overseen by a board.
Enforcement can be complex. Although Swedish courts may recognize the effects of a foreign trust in some cases, especially in matters involving international private law, they may not fully enforce all aspects, particularly those that conflict with mandatory Swedish inheritance or tax laws.
Swedish law generally applies to assets situated in Sweden, regardless of a foreign trust arrangement. This means such assets could be subject to local inheritance laws and taxation.
While it is possible to use a foreign trust, it may not achieve the intended inheritance planning goals if it conflicts with Swedish law, such as the forced share for heirs. Legal advice is essential.
Foundations may benefit from special tax rules if they serve public purposes. Foreign trusts typically do not provide tax benefits in Sweden and may trigger taxes on income, capital gains, or inheritance for residents.
A foundation is established by a founding document (such as a will or gift letter) and must be registered with the County Administrative Board (Länsstyrelsen). It must have clear statutes and a specific purpose.
Guardians, administrators, or trustees may be appointed by courts to manage assets for those unable to do so themselves. Their duties are governed strictly by Swedish law.
Seek legal advice quickly to understand your rights and obligations according to Swedish law. Disputes may involve inheritance rights, fiduciary breaches, or questions about ownership of assets under foreign arrangements.
Local legal aid services and notaries are also available in Örebro for preliminary advice and document authentication.
If you are considering setting up a foundation, managing a cross-border inheritance, or need guidance about foreign trusts with Swedish connections, follow these steps:
Taking these steps will help ensure your intentions are respected and your assets are structured effectively and legally within the Swedish legal framework.
