Best Trusts Lawyers in Balzers

About Trusts Law in Balzers, Liechtenstein

Trusts are a cornerstone of private wealth management in Balzers and the broader Principality of Liechtenstein. Introduced into Liechtenstein law with the Persons and Companies Act (PGR) in 1926, trusts have become a favored instrument for estate planning, asset protection, and succession planning. A trust in Balzers allows one party (the settlor) to transfer assets to another party (the trustee), who manages those assets for the benefit of third parties (the beneficiaries) according to the terms set out in a trust deed. Trusts are flexible, confidential, and supported by a strong legal framework that is recognized locally and internationally.

Why You May Need a Lawyer

Legal matters involving trusts can be complex and require detailed knowledge of local laws and procedures. Common situations where you may need the assistance of a lawyer include:

• Establishing a new trust in Balzers, including drafting trust deeds and registration
• Managing or administering an existing trust, especially when changes are needed
• Resolving disputes among settlors, trustees, or beneficiaries
• Navigating tax implications for trusts with local or international assets
• Interpreting the duties and liabilities of trustees under Liechtenstein law
• Handling trust dissolution or termination
• Ensuring proper compliance with the disclosure and reporting obligations

An experienced local lawyer can help ensure the trust achieves your intended goals and complies fully with the law.

Local Laws Overview

Liechtenstein’s Persons and Companies Act (PGR) provides the main legal framework for trusts in Balzers. Key features include:

• Creation and Registration: Trusts must be set up in writing. Registration in the Public Registry is optional but necessary for gaining legal effect against third parties. Unregistered trusts are valid among parties but lack protection from claims of third parties.
• Trust Deed: The trust deed outlines the trust’s purpose and its administration. It can be kept confidential except where disclosure is required by law.
• Duration: Trusts can be established for up to 100 years unless otherwise stated in the trust deed.
• Asset Protection: Assets held in trust are protected from personal creditors of the settlor or beneficiaries, subject to the law on fraudulent conveyances.
• Trustees: Trustees must fulfill fiduciary duties, act in the best interests of beneficiaries, and comply with Liechtenstein’s due diligence and anti-money laundering regulations.
• Taxation: Liechtenstein applies favorable tax treatment to trusts, especially when the settlor and beneficiaries are non-resident, making the country popular for international trust structures.

Frequently Asked Questions

What is a trust in Balzers, Liechtenstein?

A trust is a legal arrangement where a settlor transfers assets to a trustee to manage them for the benefit of beneficiaries, following terms detailed in a trust deed.

Who can establish a trust in Balzers?

Any natural or legal person, regardless of nationality or residency, can establish a trust in Balzers, subject to compliance with due diligence regulations.

Is it necessary to register a trust in Liechtenstein?

Registration is voluntary, but only registered trusts enjoy legal protection against third-party claims. Private trusts not registered are valid among the parties involved.

Are trust details confidential?

Yes, the details of a trust and the beneficiaries can remain confidential unless disclosure is required by law or for registration in the Public Registry.

How long can a trust last in Balzers?

A trust may last up to 100 years unless a shorter or longer period is provided in the trust deed, within the limits set by law.

What are the roles and responsibilities of a trustee?

The trustee manages and administers the trust assets, must act solely in the interests of the beneficiaries, keep proper accounts, and comply with fiduciary duties set by law.

Can beneficiaries challenge trustee decisions?

Yes, beneficiaries may challenge the actions of trustees if they believe the trustees breached their duties or mismanaged the trust.

How are trusts taxed in Balzers, Liechtenstein?

Trusts generally benefit from favorable tax treatment, especially for non-resident settlors and beneficiaries. However, tax implications depend on the trust’s structure and residency status.

Can foreign trusts be recognized in Liechtenstein?

Liechtenstein law generally recognizes foreign trusts, provided they comply with local legal requirements to operate within the country.

What happens if there is a dispute over a trust?

Disputes are usually resolved by negotiation or mediation, but may be brought before Liechtenstein courts if necessary. Legal assistance is highly recommended in such cases.

Additional Resources

If you need further information or support regarding trusts in Balzers, you can consult the following resources:

• Liechtenstein Public Registry - for trust registration and verification procedures
• The Chamber of Lawyers of Liechtenstein - for a directory of specialized local attorneys
• The Financial Market Authority (FMA) Liechtenstein - for regulatory and compliance matters
• Tax Administration of Liechtenstein - for information about taxation policies affecting trusts

Next Steps

If you are considering creating, modifying, or dissolving a trust in Balzers, or if you have encountered legal issues concerning a trust, your first step should be to seek qualified legal advice. A local lawyer with expertise in trusts can help you:

• Assess your goals and the suitability of different trust structures
• Draft, review, or amend trust deeds and other key documentation
• Complete registration and regulatory compliance
• Represent you in disputes or proceedings, should any arise

Contact a legal professional who is familiar with Liechtenstein trust law to ensure that all legal requirements are fulfilled and your interests are properly protected.