Switzerland trust questions, answered

The trustee holds title to the assets and runs them under the deed, with records, accounts, meetings when decisions are needed and identity checks renewed over time. Where work is done in Switzerland, a local partner takes a defined role alongside us.

The settlor is who puts assets into the trust. Beneficiaries are the people it benefits, either named one at a time or described as a class, for example the settlor's grandchildren. A purpose trust has no named beneficiaries and is held for its stated purpose instead.

A will takes effect on death and normally goes through probate. A trust can start in your lifetime, and the trustee keeps the assets under the deed whether you are alive or not. Many families use both, and your lawyer will explain how they work together.

No. A company is a separate legal person with shareholders and directors, while a trust is a relationship in which the trustee owns the assets for the beneficiaries under the deed. A trust can hold companies, and a family can form a private trust company to act as its trustee.

The letter of wishes records how the settlor would like the trustee to use its discretion. It does not bind the trustee, so the trustee can react when the family changes. You can rewrite it at any point, and every version stays with the trust records.

A trust with a Swiss-based trustee can hold cash, listed investments, shares in a family company and property, among other assets. The trustee asks for evidence of where each asset came from. Rules in the country where an asset sits still apply, so your advisers there confirm them first.

A law firm for the governing law writes the deed, and a Swiss lawyer reviews how it will work for a trustee in Switzerland. You read the draft with your own lawyer. We comment on how the trustee uses the powers described, and you sign when you are satisfied.

Yes, shares in a family company are a regular trust asset. The trustee asks for the incorporation papers and the share register in order to confirm ownership and control. A trading company raises other questions than listed securities do, so tell us early which one you hold.

Sometimes. A trustee is usually replaced by a deed of retirement and appointment, following the steps your lawyer confirms under the trust's own governing law. A second route keeps the existing trustee in place, and we coordinate the papers and reporting with it. Send us the deed and we suggest what may fit.

Often yes. A settlor can keep certain powers, such as directing investments. How far that works follows the governing law of the trust and the wording of the deed. The other route is to appoint a professional manager, which suits families who prefer not to take day-to-day decisions themselves.

In a discretionary trust the trustee decides who is paid, how much and when, with your letter of wishes as a guide. Minutes record each decision. When a beneficiary asks for a payment, the trustee measures the request against the deed and the facts of the day.

It depends on what the deed provided at the start. Many deeds allow the trustee or a protector to add or remove beneficiaries. Without that power, a change may require a court or the consent of the people affected. Your lawyer reads the deed and tells you.

After the settlor dies the trust goes on under its deed, and the trustee keeps administering it for the beneficiaries. Assets held in other countries come under the law there, so list them with your lawyer. Your lawyer confirms how it applies to your deed.

The trustee collects tax residence forms and reports where the rules require it. Switzerland applies automatic exchange of financial account information. Whether a given trust reports depends on its structure, and we confirm that in writing. With your consent, we pass the report to your tax adviser.

No. A trust does not hide assets, and it does not put them out of reach of every rule. Banks, tax authorities and the trustee must know who stands behind it. What you owe in tax depends on where you live, and your adviser can explain it.

Where work is done in Switzerland, a local partner takes a defined role in the structure and runs its own checks on you. Your engagement letter spells out the role and what the partner does for your trust, so responsibilities are clear from the start.

Tell us which structure you have in mind, the kind of assets and the countries involved. We answer with a non-binding estimate and confirm it once we have seen the documents and assets. The set-up fee for a standard trust or foundation is on the costs page.