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Liechtenstein: Offshore Business Sectors

Trust Management

As a civil law jurisdiction, Liechtenstein did not have trust legislation, until it was included in the PGR Code in 1926. This far-sighted action has led to the development of a thriving business in trust management; although other local corporate forms offer partial substitutes for the trust, it remains a highly effective means of asset protection, and non-anglo-saxon clients are often more comfortable with Liechtenstein as a jurisdiction than they might be with, for instance, an ex-British colony. Unlike common law trusts, Liechtenstein trusts can accumulate income, and are subject to no rule against perpetuities. The trust law generally is extremely flexible as regards the powers of settlors (trustors).

As long as the original trust documentation is deposited with the Registrar of Trusts within 12 months, there is no public information about the trust, and later trust documention, eg naming beneficiaries, does not have to be deposited; the level of confidentiality is therefore very good. Trust documents can be in any language.

See Law of Offshore for details of the legal regime for trusts, and see Offshore Law and Taxation Regime for details of their taxation.



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