Duration
since December 2009

Description
The trust originates from common law countries and is in principle completely foreign to continental European legal systems. In common law countries, a trust is a legal relationship for which specific assets are transferred on trust to one or more persons (trustees), who are responsible for administering these in accordance with a purpose stipulated by the settlor.

From an economic perspective, the situation in Liechtenstein is currently counter-cyclical in comparison with the international trend: while the trust is gaining in importance and prestige across the world, the economic importance of the trust in Liechtenstein (Arts. 897 - 932 PGR) unfortunately appears to be declining. This is connected with an enormous degree of legal uncertainty. It is common knowledge that trust law is extremely isolated within the Liechtenstein legal system.

It is a well-known fact that modern financial centres require a wide range of legal forms to be able to withstand competition from other legal systems. In addition to a modern law of foundations, the Liechtenstein financial centre in this respect also needs a progressive law of trusts.

Most recently, there again appears to be public interest in trust law, which can be explained by the entry into force on 1 April 2006 of the Hague Trusts Convention (Convention of 1 July 1985 on the Law Applicable to Trusts and on their Recognition).

Since the legal institution of the trust is foreign to continental European systems and lies beyond the classic legal systems of reception, focus must be placed on those countries (e.g. Great Britain, the USA, Canada, Australia, and New Zealand) which have already amassed practical experience.

The project work is aimed at reviewing and presenting the sources from the typical trust law jurisdictions in a form which is of practical relevance to the Liechtenstein market. Thus, the basis for a knowledge pool in respect of trust law specifically tailored to Liechtenstein's requirements will be laid.