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Swiss trust: how it works and who it suits
A Swiss trust is, in practice, a trust governed by the law of another place and administered by a trustee in Switzerland, because Switzerland has no trust law of its own. Families use it to keep a trustee near their Swiss bank. We work with a local partner where the work is done in Switzerland. Ask for a quote.
Reviewed by a senior trust administrator, updated
Key facts
- Trust structure
- Switzerland has no trust law of its own; a trust is set up under another place's law[1]
- Foreign law rules
- The Hague Trusts Convention entered into force for Switzerland on 1 July 2007[2]
- Reporting to authorities
- The Swiss legal basis for automatic exchange of financial account information took effect on 1 January 2017[3]
Numbers in brackets point to the Sources list at the end of this page.
Swipe sideways to see the whole diagram.
- SettlorSets up the structure and transfers assets into it
- transfers assets under a trust deedTrusteeHolds the assets and manages them under the trust deed
- holds and distributesBeneficiariesPeople who benefit from the trust under its terms
- Trustee holds legal titleTrust assetsThe property held in the structure
Roles and notes
| Part of the structure | What it does |
|---|---|
| Settlor | Sets up the structure and transfers assets into it |
| Trustee | Holds the assets and manages them under the trust deed |
| Beneficiaries | People who benefit from the trust under its terms |
| Trust assets | The property held in the structure |
- The settlor transfers assets to a trustee under a written trust deed governed by the law of another place.
- A trustee in Switzerland, working with us and a local partner, administers the trust day to day.
- A letter of wishes guides the trustee's discretion; it does not bind the trustee.
- A law firm for the governing law drafts the deed, and you review it with your own lawyer.
- The Hague Trusts Convention is the route by which Switzerland recognises a trust of this kind.
Does Switzerland have its own trust law?
No. Switzerland has no trust law of its own (source: Fedlex, Swiss federal law). A trust used in Switzerland is created under the law of another place, which the deed names.
Switzerland does recognise trusts of that kind. The Hague Trusts Convention entered into force for Switzerland on 1 July 2007 (source: HCCH, Trusts Convention status table).
So a Swiss trust, as people use the term, is a foreign-law trust with a trustee based in Switzerland. The trust law that applies is the law of the place you choose, such as Jersey.
Which statutes of that place apply is a question for counsel in that place. The law and features page explains how the pieces fit.
What a trust in Switzerland is
A trust is a legal relationship set out in a deed, not a company. You, the settlor, transfer assets to a trustee. The trustee becomes the legal owner, but holds and manages the assets under the deed, for the beneficiaries or for a stated purpose.
Most families settle on a discretionary trust: the trustee decides who receives what and when, with a letter of wishes from you as guidance. You can update the letter at any time. It is not binding, which lets the trustee respond to changed circumstances.
A trust is not a way to hide assets. Banks, tax authorities and the trustee itself must be told who is behind the trust.
Where a trust helps is continuity. After the settlor steps back, falls ill or dies, a professional trustee carries on under the deed.
The structures families ask about most are these. Each one follows the governing law you choose.
- Discretionary trust. The trustee decides distributions within a class of beneficiaries, guided by your letter of wishes.
- Reserved powers trust. The settlor keeps certain powers, such as directing investments. Whether that is allowed follows the governing law and the wording of the deed.
- Purpose trust. Whether a purpose trust is available follows the governing law, so families who want one choose a place whose law allows it.
- Private trust company. A company that acts as trustee for one family. Your lawyer confirms how the Swiss rules apply to your deed.
Here the trustee sits in Switzerland, and the law of the trust sits elsewhere. That split is the main thing to understand. The trustee follows the deed and the governing law.
We work with a local partner where the work is done in Switzerland; your engagement letter sets out its role.
What the trustee does
A trustee is bound to follow the deed, to act in the interests of the beneficiaries and to keep proper records.
In day-to-day terms, the trustee’s work includes the following items:
- holding title to the assets and keeping them separate from its own;
- trustee meetings with minutes for each distribution or major decision;
- accounts and an asset report that we send you;
- a periodic refresh of identity checks on the people connected to the trust;
- collecting the self-certification forms used for tax information exchange.
Switzerland applies automatic exchange of financial account information, and its legal basis took effect on 1 January 2017 (source: State Secretariat for International Finance, Automatic exchange of information). The tax and reporting page explains what the trustee collects.
Three decisions remain yours: who the beneficiaries are, what the letter of wishes says, and whether you decide how assets are invested or appoint a professional manager to decide.
Who uses a Swiss-administered trust
This structure suits families who already have a link to Switzerland, usually through a private bank, and want a trustee close to it.
- Families with their main bank in Switzerland who want a trustee in the same place.
- Families from Asia, the Middle East and Europe who use a trust under Jersey, Cayman or Singapore law.
- Business owners who want a trust for employees, run by a professional trustee.
- Families weighing Switzerland against Liechtenstein, as the last section describes.
Living outside Switzerland is no obstacle. If we cannot meet you in person, we take an extra identity step, such as a second set of identity documents or a first payment from an account in your own name.
Trusts that already exist are welcome too. The trust administration service shows what administration covers once we are appointed. A change of trustee follows the steps under the trust’s own governing law, and your lawyer confirms how they apply to your deed.
Documents and timeline
Expect requests for identity documents, evidence of where your money and wealth came from, and the details for the trust documents. We check every person who can direct the trust, not only the settlor.
| What we ask for | Who it concerns | Why |
|---|---|---|
| Passport and proof of address | Settlor, protector, anyone who can direct the trust | Identity and address checks |
| Occupation and evidence of source of funds and wealth | Settlor | To show where the assets came from |
| Names and details of beneficiaries | Beneficiaries | Identification; for a class, enough detail to identify them at payout |
| Incorporation papers and share register | Any company placed in the trust | To confirm ownership and control |
The table is our onboarding checklist.
A law firm for the governing law drafts the deed, with your letter of wishes alongside it. A Swiss lawyer reviews how the trust works for a trustee based in Switzerland. You review the draft with your own lawyer.
Timing depends on how complete your documents are and on third parties: the law firms, the local partner and the bank. We give no promised dates, and we show where each step stands. The step-by-step set-up guide walks through every stage.
Switzerland compared with Liechtenstein
The two places sit side by side, but they work differently. Switzerland has no trust law of its own and relies on foreign-law trusts. Liechtenstein has its own rules for trusts and foundations, and the Liechtenstein overview describes them.
Weigh three things:
- Where your family and bank are. A trustee close to the bank is easier to work with.
- Which law you want. In Switzerland the trust law is that of another place. In Liechtenstein it is local law.
- Which advisers you already use. Their familiarity shortens drafting and review.
The cost of each route depends on the structure, the assets and who does the work. We publish the set-up fee for a standard trust or foundation; the rest is quoted after we review your case.
The cost guide sets out each cost line and who charges it.
Tax and legal comparisons belong with your advisers. Reporting is covered in the tax and reporting guide.
To set Switzerland next to another place, open the side-by-side comparison tool, or browse every place we cover.
Ready to go ahead? Request a quote for Switzerland, or read the answers to common questions first.
Frequently asked questions
Can I set up a trust under Swiss law?
No. Switzerland has no trust law of its own. Instead, you set up a trust under the law of another place, such as Jersey, and appoint a trustee based in Switzerland. Switzerland recognises such a trust through the Hague Trusts Convention.
Which law would my Swiss-administered trust follow?
The law you choose in the deed. Families often pick Jersey, Cayman or Singapore because those places have developed trust statutes. Swiss counsel and counsel for the governing law agree the choice with you before the deed is drafted, and the deed names that law in a governing law clause.
Why use a trustee based in Switzerland?
Some families keep their main bank in Switzerland and prefer a trustee in the same time zone and legal environment. A Swiss-based trustee can also work in the languages of that bank. Neither reason suits every family, so we ask about your aims first.
Sources
- Fedlex: Swiss federal law, read 2026-11-05.
- HCCH: Trusts Convention status table, read 2026-11-05.
- State Secretariat for International Finance: Automatic exchange of information, read 2026-11-05.