Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 11.06.2019, 17:16
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 13,386
Groaned at 269 Times in 175 Posts
Thanked 15,834 Times in 6,719 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Trusts in Switzerland

Has anyone set up a Trust with Swiss-resident Trustors, beneficiaries and trustees? What was your experience. I wasn't sure how trusts would be treated in practice under a civil law jurisdiction.

Last edited by Phil_MCR; 11.06.2019 at 17:58.
Reply With Quote
This user would like to thank Phil_MCR for this useful post:
  #2  
Old 11.06.2019, 17:39
Treverus's Avatar
Forum Legend
 
Join Date: Dec 2007
Location: Luxembourg
Posts: 11,299
Groaned at 279 Times in 237 Posts
Thanked 21,088 Times in 7,676 Posts
Treverus has a reputation beyond reputeTreverus has a reputation beyond reputeTreverus has a reputation beyond reputeTreverus has a reputation beyond reputeTreverus has a reputation beyond reputeTreverus has a reputation beyond repute
Re: Trusts in Switzerland

I thought its the worst kept secret of all that Liechtenstein is where you want to set up your trust...
Reply With Quote
The following 3 users would like to thank Treverus for this useful post:
  #3  
Old 11.06.2019, 17:56
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 13,386
Groaned at 269 Times in 175 Posts
Thanked 15,834 Times in 6,719 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: Trusts in Switzerland

I don't mean where the trust is set up, but rather how it is viewed by Switzerland. I updated to clarify.
Reply With Quote
This user would like to thank Phil_MCR for this useful post:
  #4  
Old 11.06.2019, 18:15
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 17,994
Groaned at 287 Times in 236 Posts
Thanked 15,532 Times in 8,625 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Trusts in Switzerland

Quote:
View Post
I don't mean where the trust is set up, but rather how it is viewed by Switzerland. I updated to clarify.
The problem with trusts is fees over the long run, that additional 1 - 1.5% annual running costs plus 30-50k set up fees & the same again if the trustee decides to resign after 50 years (HSBC would be a good example) means most of the money is 'wasted', not what the settlor envisaged. Unless there is a huge amount of money involved don't bother.
Reply With Quote
The following 5 users would like to thank fatmanfilms for this useful post:
  #5  
Old 11.06.2019, 21:34
Senior Member
 
Join Date: Sep 2015
Location: Zurich
Posts: 401
Groaned at 2 Times in 2 Posts
Thanked 494 Times in 187 Posts
eairicbloodaxe has a reputation beyond reputeeairicbloodaxe has a reputation beyond reputeeairicbloodaxe has a reputation beyond reputeeairicbloodaxe has a reputation beyond repute
Re: Trusts in Switzerland

Quote:
View Post
The problem with trusts is fees over the long run, that additional 1 - 1.5% annual running costs plus 30-50k set up fees & the same again if the trustee decides to resign after 50 years (HSBC would be a good example) means most of the money is 'wasted', not what the settlor envisaged. Unless there is a huge amount of money involved don't bother.

We do these all the time in my office. Treverus is right, FL is the place.


The fees are not always quite as bad as FMF suggests, but his last line rings true. And by that we mean 6 digits minimum (Not including the decimal point or any commas).


Regards




Ian
Reply With Quote
  #6  
Old 11.06.2019, 23:02
jacek's Avatar
Forum Legend
 
Join Date: Oct 2007
Location: Aargau
Posts: 8,206
Groaned at 105 Times in 80 Posts
Thanked 5,690 Times in 3,207 Posts
jacek has a reputation beyond reputejacek has a reputation beyond reputejacek has a reputation beyond reputejacek has a reputation beyond reputejacek has a reputation beyond reputejacek has a reputation beyond repute
Re: Trusts in Switzerland

“I don’t trust anyone to set up a trust here ...

P.S. About to fetch my coat and disappear

(Poem by jacek)
Reply With Quote
  #7  
Old 12.06.2019, 09:25
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 17,994
Groaned at 287 Times in 236 Posts
Thanked 15,532 Times in 8,625 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Trusts in Switzerland

Quote:
View Post
We do these all the time in my office. Treverus is right, FL is the place.


The fees are not always quite as bad as FMF suggests, but his last line rings true. And by that we mean 6 digits minimum (Not including the decimal point or any commas).


Regards




Ian
The problem is the law changes & compliance costs go up. 50 years ago fees could be negotiated to 0.3% to include accounts etc, now everything is added on top. What seemed a good idea at the time, may not continue to be so clever.
I would suggest 6 figures minimum too, however the first figure should not be a 1 & probably not a 2 either.
Reply With Quote
This user would like to thank fatmanfilms for this useful post:
  #8  
Old 12.06.2019, 10:11
Forum Legend
 
Join Date: Oct 2014
Location: Ostschweiz
Posts: 7,516
Groaned at 248 Times in 211 Posts
Thanked 9,036 Times in 4,731 Posts
Urs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond reputeUrs Max has a reputation beyond repute
Re: Trusts in Switzerland

Applicable rules depend on whether the trust is revocable or not. Perhaps see here for an overview - the PDF is ten years old but the general approach should still apply.
Reply With Quote
The following 2 users would like to thank Urs Max for this useful post:
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
EU citizen living in Switzerland, working in EU - can spouse work in Switzerland ohboy Permits/visas/government 3 29.03.2016 19:45
27 days and 26 nights in Switzerland (all time in Switzerland) marcosguisilva Travel/day trips/free time 3 15.04.2013 15:41
Off-Shore Leaks, Trusts and Tax Fraud Sbrinz Finance/banking/taxation 6 06.04.2013 10:12
Trusts for children nicnac Finance/banking/taxation 12 03.02.2012 08:58
treatment of UK discretionary trusts lankylewis Finance/banking/taxation 0 18.08.2010 16:27


All times are GMT +2. The time now is 13:41.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0