Tremaco

Trust

The Trust is similar to the „trust settlement“ or „family trust“ in Anglo-Saxon legal systems. Anyone whose private or business interests fall in the scope of the “common law” system often makes use of the widely known trust instead of the lesser known foundation. Unlike the other legal forms of organizations, the trust has no legal personality of its own.

The trustee is that person to whom another (the settlor) pays any form of asset (as the trust fund), with the obligation to administer or use this in his own name as independent legal owner but for the benefit of one or more third parties (beneficiaries) and with effect general effect against anyone. Trusts are very versatile in use and are permitted for charitable, family-related, social, cultural or similar purposes.

The trust is subject to the trust deed which regulates the relation between the settler, beneficiaries and trustee as well as additional details of the trust, which are usually quite extensive. In case something is not regulated in the trust deed, recourse can be made to the law.

Trust must be entered in the commercial register or the trust deed must be deposited there. When a trust is submitted for registration, only the date of formation, the name of the trust, the duration and the trustees must be made public. In case of such registration of the trust the deed must not be submitted. Accordingly trusts entered at the Commercial Register are more discrete.

The trust fund may for example consist of bank deposits, securities, insurance policies, licensing and trademark rights, shares or real estate. Anyone can be a settlor, legal entities included and regardless of domicile or place of residence. Following the formation of the trust, the settlor may no longer dispose of the trust fund formerly held by him. Only the trustee is entitled to dispose of it in accordance to the trust deed. The trustee may delegate asset management to banks or third parties.

The beneficiaries of the trust are those persons to whom a benefit from the trust is due. This may also include the settlor himself and even the trustee, as long as he is not the exclusive beneficiary. Other beneficiaries can be individuals, legal entities or other institutions.

A trust deed may be amended if it so provides. A trust deed also states the term of the trust. As opposed to the Anglo-Saxon jurisdiction (rule against perpetuity) that term can expressly be unlimited under the laws of the Principality of Liechtenstein. The power to terminate the trust is normally due to the trustee.