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Glossary

Trust

A trust is a legal relationship of Anglo-Saxon origin in which a person (settlor) transfers assets to a trustee, who manages them for the benefit of beneficiaries. Swiss law does not recognise a trust of its own as a national legal form. Since 1 July 2007, however, Switzerland recognises foreign trusts on the basis of the Hague Convention on the Law Applicable to Trusts and on their Recognition (SR 0.221.371). A trust can therefore be effective in Switzerland but is governed by the foreign law to which it has been made subject.

At a glance

01

Swiss law does not provide its own trust legal form; a trust is always established under foreign law.

02

Since 1 July 2007, Switzerland recognises foreign trusts on the basis of the Hague Trust Convention (SR 0.221.371).

03

In a trust, the trustee's legal ownership is separated from the economic interest of the beneficiaries.

Frequently asked questions

Swiss law does not have its own trust legal form, so a trust is always established under foreign law. Switzerland has recognised such foreign trusts since 2007 on the basis of the Hague Trust Convention. Establishment and administration can nonetheless take place from Switzerland, for example through a trustee resident here.
A foundation is a separate legal person with its own assets, whereas a trust is a legal relationship in which the trustee holds the assets in a fiduciary capacity. Foundations are familiar to Swiss law, while the trust originates from the Anglo-Saxon legal tradition. Which structure fits depends on the family situation, objectives and tax consequences, and should be clarified legally.

Sources: Systematische Rechtssammlung (fedlex), Haager Trust-Übereinkommen SR 0.221.371