Our lawyer, Alexander Milionis, who is specialised in arbitration and litigation before state courts, has authored a paper titled “Arbitrability of inheritance matters in Liechtenstein compared to Switzerland”. The paper has been included in the Swiss Arbitration Academy’s series and will be published by Stämpfli in the volume “Selected Papers on International Arbitration” 2027.
In both jurisdictions, inheritance disputes are generally arbitrable insofar as they are patrimonial in nature. Probate and status proceedings remain, in principle, reserved to the state authorities. An arbitral tribunal may, however, be mandated to decide, e.g., on the allocation of legacies in accordance with criteria set by the testator.
Liechtenstein already for a long time provides an express statutory basis for testamentary arbitration clauses in Section 598 para. 2 Civil Code. Unlike ordinary arbitration clauses, these must also comply with the formal requirements of inheritance law, unlike in Switzerland, and they also bind forced heirs who have been entirely omitted. Switzerland has newly introduced a statutory basis in 2021 and assesses the clause more independently of the will, but does not extend it to completely omitted forced heirs.
In practice, arbitration clauses should focus on patrimonial disputes and clearly define their personal scope. Provision should also be made for the costs of financially weaker parties. Where a Liechtenstein foundation is involved, the safer approach is to have the seat of arbitration in Liechtenstein.
Niedermüller Attorneys at Law regularly advises and represents clients in arbitral proceedings and in cross-border inheritance, foundation and trust disputes.
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