The law of trusts in Liechtenstein was adopted in 1926, and since then only it in continental Europe has maintained a Trust Institute.
In Liechtenstein trusts may be established in accordance with the law on trusts, as well as in accordance with the foreign laws, but in the second case, the trust loses the opportunity to receive tax relief regime.
In Liechtenstein trust can be established for any purpose that is not inconsistent with the law and morality, they are mostly designed for asset protection and inheritance planning.
In Liechtenstein trust name is selected freely, in any language, but before establishing it must be approved by the Commercial Register in order to avoid cases of existence of the same name. The name should exclude names of the areas and nationalities and the word “trust” must be added.
A trust is created when the contract is prepared and signed, in which the trust assets are listed, beneficial owners and the manager are appointed and, if necessary, division of property is defined as well as other trust activities nuances mentioned.
The contract may be prepared in any language, and registered in the Commercial Register during the period up to 12 months from a trust establishing (this rule applies to trusts, with duration of more than one year). The registration fee is two hundred Swiss francs. If the latter changes are made, they should also be recorded in the register. These contracts are confidential.
Trust founder has no right to manage trusts, and his main task is to submit assets. With trust management deal- trustees. Trust operations control can be implemented with the assistance of an audit. Beneficiaries have the right to claim compensation from the trustee of the lost property, provided if such losses will be determined
Liechtenstein trusts are exempt from tax reporting and must pay a minimum income tax in the amount of 1,200 francs.