Best Trusts Lawyers in Dornach

About Trusts Law in Dornach, Switzerland

Switzerland does not currently have a domestic trust law that allows the creation of a Swiss-law trust. However, Switzerland has recognized trusts created under foreign laws since the Hague Convention on the Law Applicable to Trusts and on their Recognition entered into force for Switzerland in 2007. This means that a trust validly set up under a foreign legal system can be recognized and given effect in Dornach and throughout Switzerland, subject to Swiss public policy and mandatory local rules.

In practice, residents of Dornach in the canton of Solothurn frequently encounter trusts in cross-border estate planning, asset protection within lawful limits, family business succession, and charitable giving. Trustees, protectors, settlors, and beneficiaries may live in Switzerland, hold Swiss bank accounts, or own Swiss real estate through trust structures. These connections trigger Swiss private law, tax, regulatory, and reporting considerations that should be reviewed with qualified local advisers.

Why You May Need a Lawyer

You may need a lawyer in Dornach if you are a Swiss resident looking to establish a foreign-law trust and want to ensure it will be recognized in Switzerland and coordinated with Swiss matrimonial property and inheritance rules. You may also need help if you or your family members are beneficiaries of an existing foreign trust and you need to understand Swiss tax treatment of trust income or distributions after moving to Dornach.

Legal advice is especially important if a trust will hold Swiss assets such as a bank account or Swiss real estate. Acquiring residential real estate in Switzerland through a trust can trigger restrictions under Lex Koller if foreign persons are involved. If you or your trustee is resident in Switzerland, anti-money laundering rules, reporting under the Automatic Exchange of Information regime, and day-to-day compliance must be addressed.

Lawyers also assist with disputes about trustee decisions, forced heirship challenges by family members, changes of governing law or trustees, court recognition of protective measures, and tax rulings with the Solothurn cantonal tax authorities. They coordinate notarial services where Swiss formalities are required, and work with foreign counsel to align the trust deed with Swiss public policy.

Local Laws Overview

Recognition and applicable law. Switzerland recognizes foreign-law trusts under the Hague Convention. The settlor may choose the governing law in the trust deed, or the applicable law is determined by the trust's closest connections. Swiss courts and authorities in Dornach will give effect to essential trust features such as the separation of legal and beneficial ownership, trustee powers, and beneficiary rights, provided there is no conflict with Swiss mandatory rules.

Succession and forced heirship. Swiss inheritance law contains compulsory portions for certain heirs. Since 1 January 2023 the reserved portion for descendants has been reduced and the reserved portion for parents has been abolished. A lifetime transfer into a trust by a person subject to Swiss inheritance law can be challenged by heirs if it infringes their compulsory shares. Planning must coordinate the trust with a Swiss will, matrimonial regime, and conflict-of-law rules.

Tax treatment. A trust is not a taxable person for Swiss income and wealth tax. The Swiss Federal Tax Administration has issued guidance on how trusts are classified for tax purposes. Key factors include whether the trust is revocable or irrevocable and whether beneficiaries have fixed interests or are discretionary. In many cases, assets and income are attributed either to the settlor or to the beneficiaries for Swiss tax purposes. Distributions from an irrevocable discretionary trust are often treated as gifts from the settlor rather than taxable income, but gift and inheritance taxes are levied at the cantonal and communal level. The canton of Solothurn applies its own rules and exemptions, which can vary depending on the relationship between the parties and the type of transfer. Advance clarification from the Solothurn tax authorities is advisable.

Real estate and Lex Koller. Trust ownership of Swiss real estate is sensitive. Restrictions on the acquisition of residential real estate by foreign persons can apply if the trustee or controlling persons are considered foreign. Proper structuring and pre-clearance are often required before a trust acquires property in or near Dornach.

Regulatory and AML. Trustees who are professionally acting in or from Switzerland are financial intermediaries subject to the Swiss Anti-Money Laundering Act. They must conduct due diligence on settlors and beneficiaries, identify beneficial owners, and generally affiliate with a recognized self-regulatory organization. Swiss resident trustees of investment-type trusts are also involved in Automatic Exchange of Information reporting, and some trusts may be reportable as financial institutions for CRS purposes.

Foundations and alternatives. Because Switzerland does not yet offer a domestic trust, some clients use Swiss foundations for philanthropic or family governance purposes. Foundations operate differently from trusts and are supervised under Swiss law. Your lawyer can explain whether a foreign trust, a Swiss foundation, or a hybrid approach best fits your objectives.

Notaries and formalities. While a foreign trust deed generally does not require Swiss notarization, related Swiss documents may. Examples include real estate transfers, certain marital property agreements, or certified signatures needed by banks or registries in the canton of Solothurn.

Frequently Asked Questions

Can I create a Swiss-law trust in Dornach

No. Switzerland currently does not offer a domestic trust. You can establish a trust under a foreign law such as English, Jersey, Guernsey, or Liechtenstein law and have it recognized in Switzerland if it meets the requirements of that foreign law and does not violate Swiss mandatory rules.

Will a foreign trust be recognized by Swiss authorities

Yes, provided it is valid under its governing law and consistent with Swiss public policy. Swiss authorities recognize the role of the trustee and the separation of assets. Practical recognition also depends on clear documentation of the trust deed, trustee powers, and the identities of the parties involved.

How are trusts taxed for Swiss residents in Dornach

Trusts are not taxed as separate persons. Depending on whether the trust is revocable or irrevocable and whether beneficiaries have fixed interests or are discretionary, the income and wealth may be attributed to the settlor or the beneficiaries for Swiss tax purposes. Advance tax guidance from the Solothurn cantonal tax office is often sought to confirm treatment.

Are trust distributions to beneficiaries taxable in Switzerland

It depends. Regular income allocations from a fixed interest trust may be taxable as income. Distributions from an irrevocable discretionary trust are often treated as gifts rather than income. Gift and inheritance taxes are cantonal, so the rules and exemptions in the canton of Solothurn and the beneficiary's commune will apply.

Do I need to register a trust in Switzerland

There is no general public trust register in Switzerland. However, banks and other financial intermediaries will require comprehensive documentation for compliance. Trustees acting professionally in or from Switzerland must comply with anti-money laundering rules and usually affiliate with a recognized self-regulatory organization.

Can a trust own Swiss real estate in Dornach

It is possible, but restrictions under Lex Koller on acquisitions by foreign persons may apply. The analysis looks at the trustee and sometimes the persons who ultimately control the structure. Engage local counsel before signing any property contract to confirm permissibility and permit needs.

Can a Swiss resident be a trustee

Yes. A Swiss resident can serve as trustee. If the trustee acts in a professional capacity, anti-money laundering obligations apply. The trustee's Swiss residence may also affect tax reporting and CRS classification of the trust.

How do Swiss forced heirship rules affect trusts

Transfers into a trust by a person subject to Swiss inheritance law can be reduced or challenged if they infringe compulsory shares. Since 2023 the reserved portions for descendants have been reduced, which increases planning flexibility, but careful coordination with a Swiss will and marital property agreement is still essential.

Are charitable trusts recognized in Switzerland

Charitable purposes are recognized, and foreign charitable trusts can be acknowledged. For philanthropic projects focused in Switzerland, a Swiss foundation may be preferable because it is a domestic vehicle eligible for local tax exemptions if requirements are met. Your adviser can compare both options.

What documents should I gather before meeting a lawyer

Bring the draft or executed trust deed, any letters of wishes, trustee and protector details, identification documents, asset lists, bank statements, any previous tax rulings, wills and marital agreements, and details of family members and intended beneficiaries. For real estate matters, include title extracts, financing terms, and any preliminary contracts.

Additional Resources

Swiss Federal Tax Administration - guidance on the tax treatment of trusts and circulars.

Federal Office of Justice - information related to the Hague Trusts Convention.

Canton of Solothurn Tax Office - cantonal rules for income, wealth, gift, and inheritance taxes.

Grundbuchamt Dorneck-Thierstein - land registry for real estate matters affecting Dornach.

Swiss Financial Market Supervisory Authority - overview of recognized self-regulatory organizations for AML compliance.

Swiss Bar Association and the Bar Association of the Canton of Solothurn - directories to find qualified lawyers.

STEP Switzerland - Association of Trust and Estate Practitioners, a network of specialists in trusts and estates.

Next Steps

Clarify your goals. Define what you want the trust structure to achieve, such as succession planning, asset stewardship, or philanthropy, and identify the persons involved.

Collect documents. Gather identification documents, family and marital status information, asset inventories, existing wills, and any current trust documentation.

Seek local advice in Dornach. Consult a lawyer experienced in cross-border trusts and Solothurn tax law to assess recognition, tax, and compliance. Where appropriate, your lawyer can coordinate with foreign counsel who will draft or amend the trust deed.

Obtain tax clarity. Request advance guidance or a ruling from the Solothurn tax authorities on the classification of the trust, attribution of income and wealth, and potential gift and inheritance tax consequences.

Plan for real estate. If Swiss property is involved, have your lawyer analyze Lex Koller implications and liaise with the local land registry and a notary as needed.

Set up compliance. Ensure trustee AML procedures, documentation standards, banking KYC, and CRS reporting are in place. Confirm trustee affiliation with a recognized self-regulatory organization if required.

Document and review. Keep complete records, letters of wishes, and minutes of trustee decisions. Review the plan after major life events or legal changes to keep your structure valid and efficient.