The consultation on the introduction of a Swiss trust showed that there was currently no majority support for the introduction of such a legal institution.
No Swiss trust
Trusts are a very common and well-known instrument in Anglo-Saxon countries. As an established, versatile, and flexible vehicle, they are regularly used within estate planning and asset protection. In Switzerland, trusts have been recognized under the Hague Trust Convention since 2007, a fact that led to their increased significance.
The motion "Introduction of a Swiss trust" instructed the Federal Council to implement a legal basis for trusts. However, the consultation on the introduction of a Swiss trust showed that there was currently no majority support for the introduction of such a legal institution. In particular, the tax provisions were clearly rejected, so the proposal has been dropped.
To ensure that Switzerland has an additional, flexible estate instrument representing a new alternative to foreign legal vehicles, the strengthening of the Swiss family foundation respectively the lifting of the ban on so-called pure maintenance or beneficial foundations (Burkart Motion: 22.4445 | Renforcer les fondations de famille suisses en supprimant l'interdiction des fondations d'entretien | Business | The Swiss Parliament (parlament.ch)) is now being discussed in depth. The Council of States adopted the Burkart Motion at its meeting of December 12, 2023. The National Council is currently discussing the matter.
MME's Private Clients Team gladly advises you on all matters relating to the establishment and planning of trusts and foundations.
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