Frequently asked questions

A trust is a legal arrangement whereby a person (the settlor) transfers assets to another person or entity (the trustee) who holds and manages them for the benefit of third parties (the beneficiaries). The trustee has a legal obligation to manage the assets in accordance with the terms of the trust deed and in the interest of the beneficiaries.

A Swiss trustee is a professional entity authorised under the Financial Institutions Act (FinIA) to act as trustee. Swiss trustees are subject to FINMA supervision and must comply with strict requirements regarding compliance, governance and anti-money laundering.

No, Switzerland does not have a domestic trust law comparable to common law jurisdictions. However, Switzerland recognises foreign law trusts through the Hague Convention on the Law Applicable to Trusts and on their Recognition (1985). Trusts administered from Switzerland are therefore governed by the law of another jurisdiction (Jersey, Guernsey, Cayman Islands, New Zealand, etc.).

Switzerland offers a unique combination of political and economic stability, regulatory discipline, world-class banking infrastructure, legally protected confidentiality and international connectivity. FINMA-licensed trustees add an additional layer of credibility and accountability.

In a discretionary trust, the trustee has the power to decide on distributions to beneficiaries. In a fixed trust, the beneficiaries' rights are predefined in the trust deed. The choice depends on family objectives, the desired level of flexibility and tax considerations.

A Private Trust Company is a company established specifically to act as trustee of one or more family trusts. It allows families to be more involved in the governance of the trust while maintaining a structured framework. PTCs are often set up for substantial estates requiring bespoke governance.

A revocable trust can be amended or terminated by the settlor during their lifetime. An irrevocable trust generally cannot be modified without the consent of the beneficiaries or the competent court. Irrevocability typically provides better asset protection but less flexibility.

The protector is an independent person or entity endowed with specific reserved powers defined in the trust deed. These powers may include approving distributions, changing the trustee, modifying the governing law or adding beneficiaries. The protector provides an additional layer of oversight.

Fees depend on the complexity of the structure, the number of jurisdictions involved, the type of trust and the assets concerned. As a general rule, structuring fees include the drafting of the trust deed, the setup of governance arrangements and regulatory onboarding. A confidential assessment allows us to provide an estimate tailored to your situation.

The typical timeline ranges from a few weeks to several months depending on complexity. Factors that influence the timeline include: the number of jurisdictions, the nature of the assets, KYC/AML verifications, the opening of bank accounts and the drafting of governance documents.

Typically required documents include: identity documents and proof of address for the settlor and beneficiaries, documentation on the source of funds, bank statements or asset valuations, and information on the family structure. The exact list depends on the complexity of the situation and applicable regulatory requirements.

Trusts administered from Switzerland are subject to CRS (Common Reporting Standard) and FATCA (Foreign Account Tax Compliance Act) reporting obligations. The trustee is responsible for collecting information, classifying the trust and submitting reports to the competent authorities according to the applicable schedules.

Yes, it is possible to change trustee through a structured process. This typically involves reviewing the trust deed, coordinating between the outgoing and incoming trustee, transferring assets and documentation, and updating banking relationships. Montaigne Trust regularly assists families with this type of transition.