Best Trusts Lawyers in St. Gallen

About Trusts Law in St. Gallen, Switzerland

Switzerland, including St. Gallen, does not have a formal Trusts law as part of its civil law tradition. However, as Switzerland became a signatory to The Hague Convention on Trusts in 2007, it recognises and enforces Trusts established under foreign law. This leads to a complex intersection of international and Swiss law in the creation and resolution of trusts in this jurisdiction, requiring specialized legal understanding.

Why You May Need a Lawyer

Trust law is complex and involves elements of contracts, property, and inheritance law. Professionals and individuals often require expert legal help to navigate through these complexities. Situations can include setting up a Trust under foreign law for tax planning, settling an international estate involving a Trust, or resolving disputes involving a Trust. Having a trusted and experienced lawyer is integral to ensuring your rights and interests are protected.

Local Laws Overview

Swiss law does not have a specific concept for trusts. Trust-like arrangements are allowed, such as foundations and family agreements, but are regulated differently. That said, foreign trusts are recognised for tax and legal purposes if they meet the requirements of the Hague Convention. For example, Swiss courts will enforce a foreign Trust arrangement, and specific rules apply for Swiss tax purposes, like the Tax Update 2015 for improved transparency.

Frequently Asked Questions

1. Can I set up a Trust in St. Gallen?

Although Switzerland does not have Trusts under its legal system, it does recognise foreign law trusts. Therefore, you can set up a Trust under the jurisdiction of a country that does recognise Trust law, and this trust can be enforced in Switzerland.

2. How is a foreign Trust taxed in St. Gallen?

The tax liabilities of a Trust in Switzerland depend significantly on the Trust's specifics and can be complex. Swiss tax authorities consider several factors, such as the settlor's and beneficiaries' domicile and the Trust's nature and administration.

3. What happens if there's a dispute involving a Trust?

Any dispute involving a Trust would be settled based on the trust deed's jurisdiction clause. If it falls under Swiss jurisdiction, Swiss court will apply the Hague Trust Convention’s principles to resolve the dispute.

4. Do I need a lawyer to set up a Trust?

Given the complexities of setting up a trust, especially a foreign trust recognised in Switzerland, it is highly advisable to seek legal counsel. An experienced lawyer will help ensure all legal requirements are met, and your interests are protected.

5. How are Trusts used in estate planning in Switzerland?

In Switzerland, Trusts are primarily used by foreign citizens for estate planning purposes, to manage and distribute an estate within family members efficiently and according to their wishes, while considering the Swiss taxation system.

Additional Resources

The Federal Tax Administration (FTA) and the Office of Justice are helpful resources for understanding complex Swiss taxation and trust enforcement. Non-profit organisations like the Swiss and Liechtenstein STEP Federation are also beneficial for trust and estate practitioners.

Next Steps

If you require legal assistance with Trusts in Switzerland, consider contacting a lawyer specialising in Trusts. They can guide you through the process, from initial consultation, understanding your requirements, providing advice, to setting up the Trust and resolving any potential disputes. Remember to prepare any relevant documents and questions before the consultation to make the most of the meeting.