Why choose a trustee in Switzerland?
Updated: Aug 20, 2021
Andrew McCallum & Ana Romero | Rhone Trust & Fiduciary Services S.A.
Switzerland has established itself as an attractive destination for wealthy individuals and families for many generations. It has built a worldwide reputation as a politically, legally and economically secure financial centre thanks to its developed banking, its solid and stable economic system, and its political direct democracy system. Switzerland is a key player in the high-net-worth and ultra-high-net-worth arena, where families and individuals are well catered by an extensive choice of private banks, independent asset managers, family offices and trust companies.
Trusts in Switzerland
Trusts are formally recognized in Switzerland since 2007, when the country ratified the Hague Convention of 1985 on the Law Applicable to Trusts and their Recognition (the “Convention”). The Convention came into existence to set forth the general procedures of how the countries shall consider trust instruments set up in other states.
The ratification of the Convention helped Switzerland further position itself as a “Trust-friendly” jurisdiction and provided legal certainty to Swiss trustees operating trusts governed by foreign law (e.g. Bahamas law). It further strengthened the use of Trusts in Switzerland as a tool for estate and succession planning, and wealth and asset protection.