Liechtenstein Trust Law – A brief overview
The reform of Liechtenstein trust law, which comes into force on 1 July 2026, represents the most comprehensive development of trust law in years. Whilst the new provisions will, in principle, apply to newly established trusts from that date, the law provides 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.
The Liechtenstein trust is governed by Articles 897 et seq. of the Law on Persons and Companies (PGR) and is one of the most time-honoured instruments of asset protection and estate planning in Liechtenstein. It offers settlors a wide range of structuring options whilst also benefiting from the established legal framework of the Liechtenstein financial centre. Liechtenstein trust law combines elements of Anglo-Saxon common law with the principles of continental European civil law, and has thus always held a special position within the European legal landscape.
The appeal of the Liechtenstein trust lies in particular in its high degree of flexibility, which is once again explicitly emphasised in various places in the materials relating to the current reform. The settlor can largely tailor the organisation of the trust to their individual needs and, in particular, determine the beneficiaries, the trustee’s powers and the purposes for which the trust property is to be used. This makes the trust particularly suitable for wealth and estate planning, the long-term preservation of family wealth and the structuring of asset protection. Its attractiveness is further enhanced by Liechtenstein’s tax regime, under which the trust is generally subject only to the minimum corporate income tax of CHF 1’800 per year.
The situation prior to the reform
Under current trust law, the settlor is traditionally granted extensive private autonomy. At the same time, compared with Liechtenstein foundation law—which is also codified in the PGR—there have hitherto been fewer detailed statutory requirements regarding control, accounting and supervision. Rights to information and control were previously only partially regulated by law and were otherwise specified in the trust instruments and through judicial practice. The reform was triggered in particular by the realisation that, in certain trust structures – notably in pure discretionary trusts without any further supervisory bodies established by the settlor through private autonomy – gaps in control may arise within trust governance. The legislature therefore saw a need for action to ensure effective and continuous oversight of the administration of the trust property.
With the reform of trust law, numerous areas previously governed primarily by private autonomy or practice are now expressly regulated by law for the first time. The focus is on the introduction of a person entitled to information as a statutory supervisory body, the clarification of accounting and documentation obligations, the strengthening of judicial supervision, and the creation of differentiated regulations for charitable and private-benefit trusts.
The reform thus 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.
Charitable and private-benefit trusts
Until now, trust law has not 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 as to whether the trust property serves predominantly charitable or private purposes, the trust is to be classified as private under the newly introduced rule of doubt.
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.
The reform also contains various clarifications regarding trust law. For instance, certain forms of trust previously recognised – in particular, purpose trusts – are now expressly enshrined in law, and the requirements regarding the content of trust documents are set out in greater detail.
Supervision of charitable trusts
Until now, charitable trusts were not subject to any ongoing institutional supervision, such as that provided for charitable foundations. The reform now establishes, for the first time, an explicit statutory supervisory regime. The legislature’s aim is to apply the supervisory model already established for charitable foundations to charitable trusts to a large extent.
In future, charitable trusts will be subject to the supervision of the Foundation and Trust Supervisory Authority (STIFTA). This is not a newly created authority; rather, the existing Foundation Supervisory Authority is being expanded to include the supervision of charitable trusts and renamed accordingly. Furthermore, STIFTA assumes the role of the party entitled to information in relation to charitable trusts by operation of law. It is therefore not necessary to appoint a separate party entitled to information in the trust documents. 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.
Introduction of the information officer as a key control mechanism
The most significant practical change concerns 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 discretionary beneficiaries, who are far more commonly provided for in practice) or arose – provided the settlor had expressly provided for this – from the trust documents. In the legislature’s view, this could give rise to gaps in oversight, particularly in the case of discretionary trusts or complex beneficiary structures. The introduction of the ‘person entitled to information’ is intended to ensure, in future, that the trustee’s management activities are subject to effective and continuous oversight.
The legislator generally leaves it to the settlor to determine who is to assume the role of the ‘person entitled to information’. Potential candidates for this role include, in particular, the settlor themselves, beneficiaries, other persons holding authority (such as a protector or advisory board), an audit body, or other natural or legal persons designated by the settlor (such as trusted individuals and/or advisers).
In principle, the person entitled to information should be independent of the trustee and possess sufficient legal and financial expertise. However, the reform allows the settlor to adapt these requirements in the trust documents or to waive them altogether.
In addition, a successor to the person entitled to information must be designated in the trust documents to ensure that the supervisory function can be performed on a permanent basis.
Comprehensive rights to information and control
The person entitled to information is granted comprehensive statutory rights to information, disclosure and control. They are entitled to the information and documents necessary for the performance of their duties, as well as to an annual financial statement from the trustee.
Audit and reporting obligations
The information officer is not merely granted rights; these are not an end in themselves. The information officer is subject to an annual monitoring and audit obligation. They are obliged to verify once a year whether the trust property is being managed and utilised by the trustee in accordance with the trust documents. The annual review by the beneficiary therefore does not constitute a comprehensive financial audit of the trust comparable to the audit of annual accounts by an audit firm, but is essentially a compliance review intended to verify whether the trustee is adhering to the provisions of the trust documents and, ultimately, to the settlor’s wishes. If the person entitled to information identifies breaches of duty or risks to the trust property, they must take steps to remedy them. If the deficiencies are not remedied or if the trust property is at risk, they must report this to the Regional Court. Exempt from this annual review obligation are cases in which the settlor or all beneficiaries themselves hold the position of the person entitled to information.
In carrying out their duties, the person entitled to information is, in principle, entitled to reasonable remuneration and reimbursement of their expenses.
Strengthening judicial supervision
The reform also regulates the participation rights in judicial supervisory proceedings much more clearly than before. Previously, the procedural rights of persons involved in a trust were regulated only in specific instances. The reform now creates an explicit legal basis for the participation of key functionaries in judicial supervision proceedings.
In future, the settlor, the trustee and the person entitled to information will be granted explicit standing to bring proceedings and party status before the Regional Court.
Furthermore, the possibility of obtaining a so-called ‘judicial directive’ is now explicitly regulated by law. In cases of doubt or in the event of conflicts between co-trustees, trustees may apply to the Regional Court to obtain a binding decision. Compliance with such a directive generally results in the trustee being exempt from liability (provided that all relevant facts have been disclosed to the Regional Court).
Transitional period for existing trusts
The transitional provisions are of particular practical relevance, as they affect all existing trusts. Existing structures must therefore be brought into line with the new legal requirements within specified time limits. Furthermore, various notification, registration and proof obligations vis-à-vis the Office of Justice must be fulfilled within these time limits.
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).
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 into line with the new legal requirements and at least one person entitled to information, as well as their successor, must be appointed.
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 the right to make such amendments. In the first instance, these amendments should be made by the settlor. If this is not possible – for example, because the settlor has died, is legally incapacitated or cannot be contacted – the trustee may, under certain conditions, make the necessary amendments. As this involves an intervention in the trust structure originally established by the settlor, such an amendment generally requires the approval of the Regional Court in non-contentious proceedings. If it is not possible to identify a person entitled to information even in this way, the trustee must, as a secondary measure, apply to the Regional Court for the appointment of an audit body as the person entitled to information.
In summary
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.
The changes will require many existing trusts to be reviewed and, where necessary, adapted, particularly with regard to trust documentation, the appointment of a person entitled to information, and compliance with the new reporting and registration requirements. Given the applicable transitional periods, an early assessment of existing trust structures and timely implementation of any required adjustments is recommended.
We would be happy to advise you on any questions regarding the changes to Liechtenstein trust law, as well as on the review of existing trust structures and the implementation of the necessary adjustments. Furthermore, as Niedermüller Rechtsanwälte, we are also available to act as authorised information officer, thanks to our comprehensive expertise in Liechtenstein trust law.
Authors
Dr Giuseppina Epicoco; Mag Laura Hödl; Julian Nigg, LL.M.
06 | 2026