Liechtenstein Trust Law Reform 2026/27: Why Trustees, Settlors And Family Offices Must Review Their Trust Structures Now

Liechtenstein has long occupied a distinctive position in European and international private wealth structuring, because its trust, unlike many civil law instruments that merely approximate fiduciary ownership or contractual asset administration, is embedded in the Persons and Companies Act (PGR) as a flexible, statutory, internationally recognisable legal form which, while historically inspired by the Anglo-Saxon trust tradition, has developed into a characteristically Liechtenstein solution for asset protection, succession planning, family governance, philanthropy and cross-border wealth continuity.

With the trust law reform adopted in 2025 and entering into force on 1 July 2026, this model is not abandoned, weakened or transformed into a foundation-like instrument. Rather, it is recalibrated. The reform aims to close governance gaps which could arise where neither beneficiaries, protectors, audit bodies nor other function holders had sufficient access to information to monitor whether the trustee was administering the trust property in accordance with the trust documents. The Government’s legislative materials describe the central element of the reform as the requirement that each private-benefit trust must have at least one Informationsberechtigter, best translated as an information rights holder, together with a successor.

For international families, fiduciaries, trustees, protectors, banks, family offices and professional advisers, the practical message is simple. Every Liechtenstein trust should now be reviewed, classified and, where necessary, adapted. The question is no longer whether governance should be documented in a sophisticated trust structure. The question is whether the structure will meet the new statutory standard, whether the trust deed or supplemental instrument contains a valid information rights mechanism, whether successor arrangements are robust, whether existing beneficiaries can or should be appointed, and whether court involvement or the appointment of an audit firm will become necessary.

The reform is particularly relevant because it does not only apply to trusts established after 1 July 2026. Existing trusts are also brought into the new regime, subject to transitional provisions. The practical checklist provided for implementation distinguishes between private-benefit trusts, charitable trusts, purpose trusts, registered trusts and deposited trusts, and it identifies the core decision path for determining whether the settlor can amend the documents, whether the settlor’s intention can still be established, whether current beneficiaries must be appointed, or whether an audit firm must be requested from the Liechtenstein Regional Court.

1. The central innovation: the information rights holder

The most important reform is the statutory insertion of the information rights holder into Liechtenstein trust governance. For private-benefit trusts, the settlor must designate at least one such person and at least one successor. The designation may be made in the trust deed or in a supplemental document, and the documents may also regulate term of office, removal, succession, independence, expertise, compensation and reimbursement, to the extent permitted by law.

The information rights holder is not merely a passive recipient of documents. The office carries a statutory control function. Under the new Art. 928d PGR, the information rights holder has broad information and inspection rights against the trustee, including access to trust documents, resolutions, books, records, supporting evidence and the asset inventory, and may examine the relevant facts and accounts personally or through a representative, although these rights may not be exercised abusively, dishonestly or contrary to the interests of the trust or its beneficiaries.

The same provision also imposes an annual review obligation, unless the settlor or all beneficiaries themselves hold the position. Where the review gives rise to no objection, a confirmation is sufficient. Where the review reveals mismanagement, use of trust assets contrary to the trust documents, endangerment of the trust property or trustee misconduct, the information rights holder must notify the Regional Court and, where relevant, the Foundation and Trust Supervisory Authority, although minor breaches may be cured without escalation if the trustee restores lawful conditions within an appropriate period.

This is a carefully balanced model. It strengthens accountability without granting every beneficiary unrestricted insight into the entire structure, and it preserves the settlor’s autonomy while ensuring that a Liechtenstein trust cannot remain without an effective control channel.

2. New trust documents from 1 July 2026

For new private-benefit trusts established after the reform enters into force, the trust documentation must be drafted with the information rights holder in mind from the beginning. The trust deed or supplemental instrument must identify the beneficiaries or purpose, the information rights holder, the successor and any rules that are intended to secure continuous occupancy of the position. The law also allows specific deviations from statutory default rules on independence, expertise, compensation and expenses, subject to limitations where an audit firm acts as information rights holder.

Trustees and advisers should therefore avoid generic clauses. A suitable governance clause should answer, at a minimum, who is appointed, when the appointment becomes effective, what happens on death, resignation, loss of capacity or conflict, whether a protector or advisory board is better placed than a beneficiary, whether an audit firm is needed, whether the person has sufficient familiarity with legal or financial matters, and how confidential family information is to be protected.

In private wealth structures, the choice of the information rights holder will often be strategically decisive. A settlor may prefer a protector, a family adviser, a professional fiduciary, a trusted beneficiary, a committee member or an independent audit firm. Each model has different consequences for confidentiality, cost, reporting, tax, control, continuity and potential disputes.

3. Existing trusts: the 2026 and 2027 transition period

For existing private-benefit trusts, the new law provides an adaptation period of 18 months after entry into force, which, given the 1 July 2026 start date, makes 31 December 2027 the practical key deadline. Within that period, the trust documents must either be amended to designate an information rights holder and successor, or an eligible beneficiary must be appointed, or the trustee must apply for the judicial appointment of an audit firm where no valid appointment can otherwise be made.

The transition mechanism follows a cascade.

First, if the settlor is alive, reachable and capable of amending the trust documents, the settlor may adapt the documents for the limited purpose of bringing the trust into compliance, even where no reserved amendment power existed.

Second, if the settlor is deceased, unreachable or incapable, the trustee may amend the documents in accordance with the settlor’s ascertainable intention, but only where that intention can be established from documents originating from the settlor, such as letters, emails or existing trust provisions that already allocate extensive information rights to a certain person or body.

Third, where the settlor’s intention cannot be established, but beneficiaries currently have enforceable rights to trust property or income, those beneficiaries must be appointed as information rights holders, provided that they are sufficiently identifiable, reachable and capable of holding the office.

Fourth, where none of these routes works, especially in certain purpose trust structures or where beneficiaries are not adequately ascertainable or capable, the trustee must apply to the Regional Court for the appointment of an audit firm as information rights holder.

This cascade is practically significant because it reduces uncertainty, but it also creates work. Trustees should not wait until the end of 2027. Each trust must be classified, the deed must be reviewed, settlor capacity and reachability must be assessed, written evidence of the settlor’s intention must be identified, beneficiary rights must be analysed, and any court application must be prepared in good time.

4. Registration, deposit and notification duties

The reform also modernises the registration and deposit framework. Trusts established for more than twelve months must, as a rule, be registered in the Commercial Register within 30 days of establishment, unless the trust deed or certified copy is deposited with the Office of Justice under the applicable deposit mechanism. For registration, the filing must include core identifying information, including the trust name, date, duration, trustee details and, except for charitable trusts, confirmation that at least one information rights holder and successor have been designated.

Deposited private-benefit trusts remain possible, but where the information rights holder is appointed in a supplemental instrument rather than the trust deed, the trustee must confirm the appointment to the Office of Justice together with the initial deposit. Charitable trusts are excluded from the deposit route and are subject to separate notification rules.

The reform therefore affects not only substantive governance, but also administrative practice. Trustees must align internal files, register filings, confirmations, supplemental deeds and document retention systems, because the law expressly requires the trustee to keep the trust documents and amendment documents, and to ensure that they are available in Liechtenstein within an appropriate period.

5. Charitable trusts and purpose trusts

The reform distinguishes between private-benefit and charitable trusts. A charitable trust exists where, according to the trust documents, the trust property is to be managed or used wholly or predominantly for charitable purposes or beneficiaries within the statutory meaning. For charitable trusts, the Foundation and Trust Supervisory Authority has a central role and, by law, assumes the position of information rights holder, although additional information rights holders may still be designated.

Existing charitable trusts require special attention. The implementation checklist provides that deposited charitable trusts must be registered in the Commercial Register by 31 December 2026, and registered charitable trusts require notification to the Foundation and Trust Supervisory Authority, together with a register extract, by the same date.

Purpose trusts require a separate legal analysis. Where a trust serves a purpose rather than identified or identifiable persons, the beneficiary-based fallback route may not be available. In such cases, where neither the settlor nor the settlor’s ascertainable intention produces a valid information rights holder, the trustee may need to apply for the appointment of an audit firm.

6. Sanctions and liability risk

The reform is not merely declaratory. The transitional provisions include consequences where required filings, confirmations or appointments are not made in time. The final legislative text provides for fines of up to CHF 50,000 in case of intentional breaches, and up to CHF 20,000 in case of negligence, where false notifications are made or duties concerning appointment or information are breached.

For trustees, this has immediate risk-management implications. Failure to implement the reform may create regulatory, civil, fiduciary and reputational exposure. For settlors and families, inaction may lead to a governance model that no longer reflects the original intention, because the statutory cascade may push the structure toward beneficiary appointment or judicially appointed audit oversight. For protectors, advisers and family offices, the reform creates an opportunity to professionalise control mechanisms before a conflict arises.

7. Why international clients should act early

The Liechtenstein trust remains a powerful instrument for international structuring, but its strength now depends even more visibly on disciplined governance. The reform should therefore be understood not as a compliance burden alone, but as a chance to modernise older trust deeds, clarify family governance, reduce litigation risk and strengthen international acceptance.

From a business and family strategy perspective, early review is preferable for four reasons.

First, settlor autonomy is strongest while the settlor is alive, reachable and capable.

Second, the evidentiary position becomes more difficult where the settlor’s intention must be reconstructed from historical documents.

Third, court involvement may be avoidable where the documents are amended properly and timely.

Fourth, the appointment of an unsuitable information rights holder may generate confidentiality concerns, cost disputes or governance friction that could have been prevented by tailored drafting.

Bergt Law assists trustees, settlors, protectors, beneficiaries, family offices and international advisers with Liechtenstein trust law reviews, trust deed amendments, information rights holder structures, court applications, registration and notification questions, and cross-border fiduciary governance. For tailored advice in English, international clients may contact Bergt Law through bergt.law/en.

Sources: Report and Motion by the Government to the Parliament of the Principality of Liechtenstein No 17/2025.

Executive Summary:

• Liechtenstein’s trust law reform enters into force on 1 July 2026 and introduces a new statutory governance mechanism for private-benefit trusts.
• Every private-benefit trust must have at least one information rights holder and one successor.
• The information rights holder has broad inspection and information rights, an annual review duty and, where serious concerns arise, notification duties toward the court and, where applicable, the Foundation and Trust Supervisory Authority.
• New trusts established after 1 July 2026 must be drafted with the information rights holder mechanism from inception.
• Existing private-benefit trusts generally have until 31 December 2027 to adapt their documents, appoint eligible beneficiaries or apply for a court-appointed audit firm.
• Existing charitable trusts require separate treatment, with important steps due by 31 December 2026.
• Purpose trusts may require particular attention because beneficiary-based fallback solutions may not be available.
• Trustees should review all Liechtenstein trust structures early, because late implementation may produce avoidable court involvement, governance uncertainty and sanction risk.
• The reform does not abolish Liechtenstein’s flexible trust model. It strengthens its governance architecture and increases its credibility for international wealth, succession and asset protection planning.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.