VIRTUE TRUSTEES (SWITZERLAND) AG is a Swiss trustee company acting as trustee for international trusts. Our renowned professionals have proven and profound experience in managing trust structures wherever the trust assets are located or the members of the family reside.
We are at your side to structure, preserve and help expand your wealth for today's and future generations.
Switzerland has ratified the Hague Trust Convention on the Recognition of Trusts in 2007, which essentially provides that trusts are recognised and enforced in Switzerland in accordance with the laws chosen to govern a trust. The introduction of specific clauses in various Swiss legal acts provides certainty for a settlor that the trust will be recognised and respected in Switzerland.
Most international trust laws allow for a service provider from another jurisdiction to act as trustee. It is therefore possible to combine the advantages of a flexible and well recognised common-law trust with the advantages attached to Swiss professional service providers acting as trustee. Some advantages of having a Swiss based trustee are:
A reliable, stable and predictable legal, economic and political environment.
Under the new law in force since 1 January 2020, Swiss professional trustees are subject to regulatory supervision and must be authorized to carry out their activities in addition to complying with structural, organizational, business conduct and audit requirements. This ensures a high degree of professionalism and excellency in the administration of trusts governed by the laws of any jurisdiction.
Highly qualified staff with excellent education.
High degree of responsiveness and commitment thanks to the Swiss “client-first” approach.
As substantial trust assets may already be held or managed by Swiss banks and asset managers, the engagement of a Swiss trustee can present further benefits. A Swiss trustee is in a better position to supervise bank activities and to safeguard the trust assets custodied by the Swiss bank or asset manager. The Swiss trustee’s familiarity with the Swiss legal system and high degree of competence linked to long time experience of an international environment will undoubtedly benefit the beneficiaries of a trust.
There are a variety of reasons why a client may want to establish a trust. Some major reasons are:
Trusts give a settlor confidence in how assets will be used in the future. Trusts offer a means of holding and managing bankable assets or property for beneficiaries who may not be ready or able to manage these assets themselves but who shall still be able to benefit from them. Trusts can be created to benefit family members who are not even born yet, most often the Settlor’s grandchildren and further issue. Trusts are also a great tool for succession planning in family businesses.
Wealthy families often own a variety of assets in several jurisdictions. Real estate, company shares, collectibles, bankable assets, yachts, intellectual property rights and other types of assets can be held in a trust to keep the family wealth together. Different assets classes can be segregated for risk and liability purposes by allocating them to different companies owned by the trust. Both the jurisdiction of the trust and of the underlying companies must be chosen carefully to achieve the desired goals of each trust structure, while being fully compliant with international tax, legal, and regulatory requirements.
Trusts are highly flexible instruments adaptable to a multitude of purposes, both in the private as well as in the business area. To increase their effectiveness, trusts are often combined with other legal instruments. Depending on the types of assets and jurisdictions involved, these could be holding companies, alternative investment funds, wills, insurance policies and others. Through letters of wishes the settlor will be able to guide the trustees in fulfilling their duties in changing environments and contexts.
Trusts are often established for the benefit of vulnerable persons, to ensure their financial needs are covered and professionally taken care of.
Many families consider philanthropy to form an integral part of their legacy. Trusts allow for the implementation of charitable and philanthropic long-term strategies in accordance with the families wishes and goals.
With the introduction of the worldwide automatic exchange of information, beneficial owner registers, economic substance requirements, general anti-abuse rules and other worldwide initiatives, regulations and laws, the ownership, management and oversight of international assets has become highly complex. The consolidation of international assets within a trust structure administered and managed by a professional trustee will bring relief and certainty to the settlor and his or her family that all assets are owned and managed in a fully compliant manner.
As professional Swiss trustees, we guide settlors and their families through the entire process of planning and establishing bespoke trust solutions. We fully commit ourselves to administer and manage each trust and the assets held under it in full compliance with international taxation laws and regulatory requirements.
There are different types of trusts that VIRTUE TRUSTEES offers. The most important ones are the following:
A discretionary trust is a trust in which the trustee has full discretion to decide on the share of trust capital and income each beneficiary can receive, and when they should receive it. It is the most common type of trust used in international wealth planning. Discretionary trusts are usually accompanied by a letter of wishes written by the settlor and which provides guidance to the trustee as to the exercise of their discretion.
A fixed interest trust is a trust where the interests created are readily identifiable from the terms of the trust and which will give rise to a particular beneficiary having a fixed entitlement to the income and/or capital of the trust property.
A reserved powers trust allows a person or persons (usually, but not necessarily, the settlor or the protector) to retain certain powers in respect of the trust. Depending on the power holder’s tax residency, a reserved powers trust may not be suitable.
A charitable trust must have both a charitable purpose and a public benefit, such as the relief of poverty, the promotion of education, the advancement of health and saving of lives.
Purpose trusts are neither charitable nor for the benefit of obvious beneficiaries. They are settled for a particular purpose, for example, to own the shares of a specified company, for example, a private trust company.
The Swiss Private Trust Company (PTC) is a powerful solution to optimize a family’s wealth, governance and succession planning strategy. Using a PTC as trustee allows the family members to maintain oversight of the trustee’s activities and to be included in decision-making processes.
In addition, using a PTC as trustee ensures ongoing and consistent administration of the family trusts. At Virtue Trustees, we advise and accompany families in setting up and in running their own Swiss Private Trustee Company.
Regardless of what you need support with: We offer the right and suitable services for your trust and the administration of your trust structure. Together with you and our legal experts and international tax consultants, we will determine the necessary steps to implement your roadmap for preserving your family legacy and assets over generations.
Marcel Minger
CEO
m.minger@virtuetrustees.ch
Sonja Kamenzin
Deputy CEO
s.kamenzin@virtuetrustees.ch
Thomas Frey
Board Member
t.frey@virtuetrustees.ch
VIRTUE TRUSTEES (SWITZERLAND) AG
Wengistrasse 1, 8021 Zürich, Switzerland
+41 58 450 50 00 | www.virtuetrustees.ch
© 2024 VIRTUE TRUSTEES (SWITZERLAND) AG
