Services
Disputes handled with strategy, speed and enforceability.
I represent clients in contentious matters before courts and authorities, as well as in arbitration and ADR.
I assess merits and recovery prospects early, define a clear procedural roadmap, and pursue solutions that are commercially and enforcement-minded — whether through settlement, interim relief, or decisive litigation.
Dispute Resolution
Frequently Asked Questions (FAQ)
Can I enforce a foreign court judgment in Liechtenstein?
Enforcement of foreign court judgments in Liechtenstein is very restricted. Liechtenstein is not a party to the common European recognition regimes (neither the EU Brussels Regulation nor the Lugano Convention). As a rule, a foreign civil judgment will only be recognized or enforced if a bilateral or multilateral treaty obliges Liechtenstein to do so. Liechtenstein has bilateral enforcement treaties with Switzerland and Austria, which allow certain judgments from those countries to be enforced under specified conditions. Outside such treaties (and a few specific conventions on matters like child support), a foreign judgment cannot be executed in Liechtenstein – the creditor would need to sue anew in Liechtenstein to obtain a local judgment. This strict approach (rooted in reciprocity and public policy concerns) has traditionally been part of Liechtenstein’s asset protection orientation.
Is arbitration enforceable in Liechtenstein?
Yes. Liechtenstein law fully recognizes and enforces arbitral awards and arbitration agreements. In 2011 Liechtenstein acceded to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, marking a major policy shift toward enforcement of international arbitration. Under Liechtenstein’s arbitration provisions (in the ZPO), an arbitral award – whether foreign or domestic – can be directly enforced by the Liechtenstein courts without a separate recognition (exequatur) process. The award creditor simply files for execution, and the court will review the award under the New York Convention criteria (e.g. jurisdiction, public policy) as a preliminary matter during enforcement. Notably, a certified German translation of the award must be provided to the court. Arbitration clauses are generally upheld by Liechtenstein courts, and a lawsuit brought in breach of a valid arbitration agreement will be dismissed if the defendant promptly objects. Exceptions: Like in most countries, certain disputes (such as some family law or inheritance matters) are not arbitrable by law, but the vast majority of commercial and civil disputes can be resolved via arbitration in Liechtenstein.
Does Liechtenstein have arbitration for resolving disputes?
Yes. Liechtenstein modernized its arbitration law in 2010, aligning it with international standards (inspired by the UNCITRAL Model Law). Parties can include arbitration clauses in contracts to have disputes decided by an arbitral tribunal instead of the state courts. Liechtenstein’s Arbitration Act allows a high degree of party autonomy and court support for arbitration. Combined with Liechtenstein’s New York Convention membership, this makes the country an arbitration-friendly jurisdiction for both local and international disputes.
Should I choose litigation or arbitration for a dispute involving Liechtenstein?
It depends on the context. Litigation in Liechtenstein courts is often appropriate for disputes centered on Liechtenstein law (for example, trust and foundation disputes) or when you need court orders like injunctions. The courts are adept at handling complex corporate and financial cases, and Liechtenstein judges are familiar with international aspects of disputes. However, if you anticipate needing to enforce a decision abroad, arbitration is usually preferable. Liechtenstein court judgments have limited enforceability outside the country (except in Switzerland and Austria), whereas arbitral awards are globally enforceable under the New York Convention. Arbitration also offers privacy and the ability to choose expert arbitrators. That said, certain matters (like some inheritance or family issues) cannot be arbitrated under Liechtenstein law, so court litigation would be the only option for those. In practice, many international parties include Liechtenstein arbitration clauses in contracts to get the benefit of a neutral forum and easy enforcement abroad, while relying on Liechtenstein courts for issues that legally must be decided by a court.
Do I need to provide security for costs to sue in Liechtenstein?
It depends on your residence. Liechtenstein’s civil procedure may require a security deposit for costs (aktorische Kaution) from plaintiffs who are not resident in Liechtenstein. Historically, any foreign claimant had to post a bond to cover the defendant’s legal costs unless a treaty exempted them. However, since Liechtenstein joined the EEA, it cannot discriminate against EU/EEA residents in this regard. Plaintiffs from EU or EEA countries (and similarly Switzerland, via Liechtenstein’s treaties and EEA analogies) are generally exempt from the cost security requirement now. For other international claimants (e.g. those from jurisdictions with no relevant treaty or outside the EEA), the court will typically order a security for costs upon the defendant’s request. The amount of the security is set in Swiss francs (CHF), based on an estimate of the defendant’s foreseeable legal expenses. The plaintiff can usually provide this security by a cash deposit or an irrevocable bank guarantee from a reputable bank. If the ordered security is not provided within the deadline set by the court, the lawsuit will be stayed or dismissed, so timely compliance is critical. (Notably, even a Liechtenstein citizen who has no residence or assets in Liechtenstein could be subject to this requirement – it is tied to ability to enforce a cost order, not nationality.) In summary, non-EEA plaintiffs should be prepared to post security for costs, whereas EEA-based plaintiffs can sue in Liechtenstein without a cost bond.
Who bears the legal costs in a Liechtenstein court case?
Liechtenstein follows the “winner takes it all” principle in civil litigation. This means the party that loses the case will ordinarily be ordered to reimburse the winning party’s reasonable costs. Each side must advance its own court fees and lawyers’ fees during the proceedings, but after judgment the court will issue a cost order. A party that prevails in the main case (even partially) is entitled to a cost reimbursement from the opponent proportional to its degree of success. The recoverable amount is calculated according to statutory fee tariffs (notably the RATG, the Attorney Tariff Act) and is limited to costs deemed necessary for proper prosecution or defense of the case. In practice, the court determines the exact sum of costs to be paid, ensuring they are reasonable and in line with the legal tariff guidelines. Conversely, if each party wins in part, the costs may be offset or split, as the court deems fair.
Can I obtain evidence or discovery in Liechtenstein proceedings?
Liechtenstein’s civil procedure does not allow U.S.-style broad discovery. As a civil law jurisdiction, evidence is gathered through a more controlled process. Each party is expected to present the evidence supporting its claims or defenses. You cannot force the other party to disclose all relevant documents in the expansive manner seen in common law systems. However, there are tools to secure evidence: for instance, a party can ask the court to order production of a specific document or item if it is clearly identified and material to the case, or to summon a witness to testify. The court itself plays an active role in taking evidence – it will hear witness testimony (usually through judge-led questioning after which the parties can ask their remaining questions), consider expert opinions (experts may be appointed by the court or hired by parties with the court’s permission), and evaluate documents presented. There is also a procedure for freezing evidence (e.g. securing assets or records) if there’s a risk they might be lost, which is similar to preliminary injunctions. Additionally, if evidence is located abroad, Liechtenstein courts can use international judicial assistance channels to obtain it. In summary, while you won’t have pre-trial discovery or depositions as in common law systems, the Liechtenstein court can compel specific evidence and will ensure that all relevant facts are gathered in a fair and orderly way during the proceedings.
How does the Liechtenstein court system work?
Liechtenstein’s court system is a civil law system with three instances. The court of first instance is the Princely Court of Justice (Landgericht), which hears trials. Appeals go to the Princely Court of Appeals (Obergericht), and the highest court is the Princely Supreme Court (Oberster Gerichtshof). Judges are independent and follow procedures derived from Austrian law, with adaptations to Liechtenstein’s needs. Notably, court proceedings and filings are conducted in German by law, so international parties typically engage local counsel to navigate the process.
How long do civil court proceedings in Liechtenstein take?
Timelines can vary widely based on the complexity of the case, but generally Liechtenstein litigation is not a fast process since cases are mostly rather complex. A full trial at first instance (Landgericht) often takes several months to a year or more, especially if multiple exchanges of briefs, expert evidence, or hearings are needed. After a first-instance judgment, the losing party has the right to appeal to the Obergericht (Court of Appeal), and a further appeal on points of law can be made to the Oberster Gerichtshof (Supreme Court). Each stage adds time – an appeal can easily add another year to the process. Unlike in Austria, decisions made by the Liechtenstein Supreme Court can be challenged on constitutional grounds in the Liechtenstein Constitutional Court (Staatsgerichtshof, or StGH). Due to the high value of the disputes involved, this option is almost always exercised — sometimes merely to cause delay. In total, a straightforward case might conclude in under a year, but complex disputes or multi-level appeals can take 2–3 years (or decades) to reach final resolution. Liechtenstein’s courts are diligent but also small in size, so heavy caseloads or intricate matters can lead to extended durations. Parties should be prepared for a potentially lengthy process and seek interim relief (like preliminary injunctions) where necessary to protect their interests during the litigation.
What language is used in Liechtenstein court proceedings?
All court proceedings in Liechtenstein are conducted in German, which is the sole official language of the country. This means that all pleadings and oral arguments must be in German. If documents are in another language, certified German translations are required for the court (for example, a foreign arbitral award must be submitted with an official German translation). Parties who do not speak German typically need to engage interpreters or local counsel to ensure they can fully participate in the proceedings.
Do I need a local Liechtenstein lawyer to represent me in court?
Not as a matter of strict legal obligation. Unlike some neighbouring jurisdictions, Liechtenstein's civil procedure does not impose a general requirement of mandatory legal representation (Anwaltszwang). Parties may in principle represent themselves before Liechtenstein courts. In practice, however, the picture is more nuanced — and the distinction between being allowed to self-represent and being well-advised to do so is significant. Where representation becomes effectively necessary: Liechtenstein's ZPO allows the court, under § 185 ZPO, to direct a party who cannot communicate intelligibly — whether due to insufficient German-language skills, a speech impediment, or an inability to navigate the legal and factual complexity of the case — to appear at the next hearing with a suitable representative. Failure to comply results in the party being treated as absent, which can trigger default judgment. In cross-border matters, where German is not the client's language and procedural familiarity with Liechtenstein civil practice is limited, this threshold is often crossed. The position for foreign lawyers: Non-EEA lawyers have no right of audience before Liechtenstein courts. Clients instructing counsel from outside the EEA will need a Liechtenstein Rechtsanwalt to conduct the case — their foreign lawyer may advise and coordinate, but cannot file submissions or appear. EEA-qualified lawyers benefit from Liechtenstein's implementation of the European lawyer directives. Under temporary service rules, an EEA lawyer may appear before Liechtenstein courts under their home-country title, generally in conjunction with locally admitted counsel. An EEA lawyer in registered permanent practice acquires broader rights comparable to a fully admitted Rechtsanwalt. The practical reality: Even where self-representation is technically permitted, engaging a Liechtenstein Rechtsanwalt from the outset is strongly advisable in any substantive matter. German-language proceedings, strict formal requirements, and local court practice make experienced local counsel a substantive asset - not merely a procedural convenience.
Are foreign lawyers or third-party funders allowed in Liechtenstein arbitration?
Yes, Liechtenstein’s arbitration framework is flexible regarding representation and funding. In arbitration proceedings (which are private and based on party agreement), parties are not restricted to local attorneys – they may be represented by foreign lawyers or other qualified persons of their choice. As for third-party funding, Liechtenstein law does not prohibit parties from using external funding for either litigation or arbitration. A third-party funder (such as a litigation funding firm) can finance the legal fees in exchange for a share of any recovery, subject to general contract and ethics rules. However, third-party funding is still relatively new in Liechtenstein and not widely practiced, so parties should carefully structure any funding arrangement to ensure it does not conflict with lawyer’s professional duties or create undue influence over the proceedings. In arbitration specifically, parties should also check the chosen arbitration rules – some arbitral institutions have guidelines on disclosure of third-party funding to avoid conflicts of interest with arbitrators. Overall, arbitration in Liechtenstein offers parties considerable freedom in how they appoint representatives and finance their case, making it an attractive forum for international disputes involving the principality.
Act early - before positions harden.
Share the key facts and documents. I will provide a focused initial assessment of merits, options, cost exposure, and enforcement strategy.
Regulatory counsel for Bitcoin-native and digital asset businesses.
I advise Bitcoin-native businesses and digital asset service providers on product structuring, documentation, and regulatory strategy. The focus is on pragmatic, implementation-ready advice — covering licensing and ongoing regulatory compliance as well as disputes and liability matters when issues arise.
Digital Assets & Banking
Frequently Asked Questions (FAQ)
What is MiCAR and how does it affect crypto businesses in Liechtenstein?
MiCAR — the EU's Markets in Crypto-Assets Regulation — is now in force in Liechtenstein, creating a unified licensing and compliance framework for crypto-asset service providers (CASPs) and token issuers across the entire EEA. Implementation followed a two-stage process. Liechtenstein's national implementing act (EWR-MiCA-DG) entered into force on 1 February 2025, enabling the FMA to accept formal CASP authorization applications. MiCAR then became directly applicable under international law — and cross-border passporting became operational — when it was formally incorporated into the EEA Agreement on 24 June 2025. For crypto businesses, the practical implication is that a MiCA authorization from the FMA now grants access to all 30 EEA member states without separate national licenses. MiCAR imposes uniform requirements on CASPs: minimum capital (€50,000–€150,000 depending on service type), governance and fit-and-proper standards, AML/CFT compliance, and operational resilience obligations aligned with DORA. Token issuers must comply with white paper and disclosure requirements for asset-referenced and e-money tokens. Existing TVTG-registered providers may continue operating domestically under a transitional arrangement until 1 July 2026, but cannot passport cross-border without full MiCAR authorization. The FMA issued its first MiCAR authorization in December 2025; additional authorizations are expected through the first half of 2026. Our firm has closely tracked MiCAR's development from the legislative stage — including its interaction with Liechtenstein's TVTG — and advises on authorization strategy, transitional compliance, and the full licensing process before the FMA.
Can a non-EU fintech get a MiCA license via Liechtenstein — and use it across Europe?
Yes. Liechtenstein's EEA membership makes it a viable gateway for non-European companies — including US, Asian, and other third-country fintechs — seeking regulatory access to the entire European crypto-asset market under a single MiCA authorization. MiCAR contains no third-country equivalence regime: a foreign company cannot apply directly. Instead, it must incorporate a genuine subsidiary in Liechtenstein, meet local substance requirements, and apply to the FMA for authorization. This is the same model used by major exchanges to obtain MiCA licenses across various EEA jurisdictions. The key requirements for a Liechtenstein-based MiCA application are: a registered local entity with adequate capital (minimum €50,000–€150,000 depending on the intended services, on top of corporate capital); a physical office where at least part of the crypto-asset services are conducted; at least one EEA-resident director; and genuinely effective management within the EEA — letterbox structures do not qualify. Compliance and AML officers must meet the FMA's fit-and-proper standards. Once authorized, the company can passport its services into any of the 30 EEA states via a notification procedure, with cross-border operations possible within 15 calendar days of notification. Liechtenstein's particular advantages for non-EU applicants include a crypto-specialist regulator with dedicated FinTech Unit, a 12.5% corporate tax rate, no withholding tax on cross-border profit distributions, and a proven dual-regime architecture (TVTG + MiCAR) that provides legal certainty for activities outside MiCAR's scope. The FMA recommends early pre-application engagement given the strict statutory review timelines. We advise non-EU firms on entity structuring, application preparation, and ongoing FMA liaison throughout the authorization process.
Does Liechtenstein implement the EU MiCA crypto regulation?
Absolutely. Liechtenstein, as an EEA member, has incorporated the EU’s MiCA regulation into its domestic framework. This took effect in 2025, making MiCA requirements (for example, for crypto-asset issuers and service providers) directly applicable in Liechtenstein. The FMA supervises MiCA compliance just as regulators do in EU countries. Firms licensed in Liechtenstein under MiCA enjoy the same rights as EU-based firms, including passporting of services across Europe. In short, Liechtenstein fully abides by MiCA, providing regulatory consistency and pan-European market access for crypto businesses.
What is Liechtenstein’s “Blockchain Act” (TVTG) and how does it relate to MiCA?
The TVTG (Token- und VT-Dienstleister-Gesetz), nicknamed the Blockchain Act, is Liechtenstein’s national law for blockchain and token services. Effective since January 2020, it was pioneering legislation that defines tokens as a legal asset class and regulates service providers on distributed ledger technologies. Liechtenstein was the first country to create a comprehensive blockchain legal framework. Now that MiCA is in force, the TVTG complements it: MiCA governs licensing and oversight of crypto-asset services at the EU level, while the TVTG provides additional local legal infrastructure (for example, clarifying token ownership and civil law aspects not covered by MiCA). Together, this dual framework (TVTG + MiCA) gives crypto ventures in Liechtenstein both clear property law rules and an EU-wide license regime – a unique advantage of the jurisdiction.
Why choose Liechtenstein for a fintech or crypto business in Europe?
Liechtenstein offers a combination of regulatory innovation and market access that is hard to match. It has a very forward-thinking regulator and was early to embrace fintech (for instance, with its Blockchain Act). At the same time, Liechtenstein is in the EEA, so a license here (whether a banking, e-money, investment, or crypto license) can be passported throughout the EU/EEA without extra national approvals. The jurisdiction is known for quick, business-friendly regulation, English-proficient professionals, and a stable legal environment backed by Liechtenstein’s adherence to international standards. For a fintech aiming at the European market, establishing in Liechtenstein means benefiting from a small but highly specialized financial center while gaining pan-European reach.
Can a Liechtenstein financial license be passported to other European countries?
Yes, one of Liechtenstein’s biggest advantages is full access to the European single market for financial services. Under the EEA “single license” (passporting) principle, a firm licensed in Liechtenstein can offer its services across all EU and EEA states without needing separate licenses in each country. For example, a Liechtenstein fintech authorized under MiCA or a payments/banking directive can operate in Germany, France, or any other EU country via notification rather than a new application. The FMA in Liechtenstein acts as the home regulator supervising the company’s activities abroad. This streamlined passporting process makes Liechtenstein an attractive base to efficiently access 30+ European markets.
From product idea to defensible execution.
Whether you are launching, scaling, or remediating a digital asset product, I help you build a legal and compliance framework that regulators, counterparties, and investors can rely on.
Private wealth structuring that stands up in practice.
I advise entrepreneurs, families, and beneficiaries on Liechtenstein foundations and trusts, holding and governance structures, and succession planning. The focus is on clear decision rights, bank- and audit-ready documentation, and cross-border coordination — so structures remain operable, compliant, and enforceable when tested by counterparties, regulators, or courts. I also structure philanthropic vehicles and grant-making frameworks, including open-source funding, with governance and documentation that remain workable under scrutiny. Finally, I review and remediate legacy set-ups, and support clients in contentious estate and fiduciary matters.
Private Clients
Frequently Asked Questions (FAQ)
What is a Liechtenstein trust and why do international clients use them?
A Liechtenstein trust is a legal arrangement in which a settlor transfers assets to a trustee, who manages those assets for the benefit of designated beneficiaries (much like an Anglo-American trust). Uniquely, Liechtenstein’s law allows the trust deed to specify applying either Liechtenstein trust law or a foreign trust law, offering flexibility to align with structures familiar to international clients. Unlike a foundation, a trust is not a separate legal entity; it’s a fiduciary relationship. This makes the trust very private (there’s no public registry of Liechtenstein trusts) and agile. Clients from the US, UK, Asia or Switzerland often use Liechtenstein trusts for asset protection and estate planning. The principality’s trusts can provide stronger creditor protection than many onshore structures and, if properly structured, can be flexible with respect to inheritance and matrimonial issues. For example, assets placed in a Liechtenstein trust can be shielded from forced heirship claims that might apply in the settlor’s home country, allowing the settlor’s wishes for succession to be honored more fully. Trusts in Liechtenstein can last for a very long time (even indefinitely, since there’s no strict rule against perpetuities) and can be tailored with detailed letters of wishes or trust deeds to guide the trustees. In short, international families turn to Liechtenstein trusts to secure their wealth across generations, benefiting from the country’s robust trust law and professional trustees, while enjoying a high degree of confidentiality and legal certainty for cross-border assets.
What is a Liechtenstein trust and why do international clients use them?
A Liechtenstein trust is a legal arrangement in which a settlor transfers assets to a trustee, who manages those assets for the benefit of designated beneficiaries (much like an Anglo-American trust). Uniquely, Liechtenstein’s law allows the trust deed to specify applying either Liechtenstein trust law or a foreign trust law, offering flexibility to align with structures familiar to international clients. Unlike a foundation, a trust is not a separate legal entity; it’s a fiduciary relationship. This makes the trust very private (there’s no public registry of Liechtenstein trusts) and agile. Clients from the US, UK, Asia or Switzerland often use Liechtenstein trusts for asset protection and estate planning. The principality’s trusts can provide stronger creditor protection than many onshore structures and, if properly structured, can be flexible with respect to inheritance and matrimonial issues. For example, assets placed in a Liechtenstein trust can be shielded from forced heirship claims that might apply in the settlor’s home country, allowing the settlor’s wishes for succession to be honored more fully. Trusts in Liechtenstein can last for a very long time (even indefinitely, since there’s no strict rule against perpetuities) and can be tailored with detailed letters of wishes or trust deeds to guide the trustees. In short, international families turn to Liechtenstein trusts to secure their wealth across generations, benefiting from the country’s robust trust law and professional trustees, while enjoying a high degree of confidentiality and legal certainty for cross-border assets.
Is a Liechtenstein trust a legal entity?
No – a Liechtenstein trust (Treuhänderschaft) itself is not a separate legal entity, but rather a legal arrangement. It is similar to common-law trusts: the trustee holds and manages assets in their own name for the benefit of others (beneficiaries). Unlike a company or foundation, a standard trust has no legal personality of its own. However, Liechtenstein uniquely allows an option called the Trust Enterprise (Trust reg.), which can be given legal personality by registration. In other words, you can either establish a pure trust (no independent legal entity) or register it as a “trust enterprise” in the Public Register if you need it to function like a company. This dual system is unique to Liechtenstein and offers flexibility depending on a client’s needs.
What is the difference between a Liechtenstein trust and a foundation?
Both are wealth-holding structures but they differ in form. A foundation (Stiftung) in Liechtenstein is a distinct legal person – much like a corporation – with its own legal personality and assets. A trust, by contrast, is not a legal person; it’s a fiduciary relationship where the trustee legally owns the assets on trust for the beneficiaries. In practical terms, a foundation often has a founder, a council, and beneficiaries, and can exist indefinitely as an owner of assets. A trust has a settlor, trustee, and beneficiaries and is governed by a trust deed, often limited in duration. Foundations are usually more codified (with a charter and registration with the Liechtenstein authorities), whereas trusts offer more privacy and flexibility in the trust deed. Liechtenstein’s trust is essentially an imported Anglo-American concept, whereas the foundation is a traditional civil-law entity – yet both are used for estate planning and asset protection, depending on the client’s cultural and legal preferences.
What is the difference between a Liechtenstein trust and a foundation?
Both are wealth-holding structures but they differ in form. A foundation (Stiftung) in Liechtenstein is a distinct legal person – much like a corporation – with its own legal personality and assets. A trust, by contrast, is not a legal person; it’s a fiduciary relationship where the trustee legally owns the assets on trust for the beneficiaries. In practical terms, a foundation often has a founder, a council, and beneficiaries, and can exist indefinitely as an owner of assets. A trust has a settlor, trustee, and beneficiaries and is governed by a trust deed, often limited in duration. Foundations are usually more codified (with a charter and registration with the Liechtenstein authorities), whereas trusts offer more privacy and flexibility in the trust deed. Liechtenstein’s trust is essentially an imported Anglo-American concept, whereas the foundation is a traditional civil-law entity – yet both are used for estate planning and asset protection, depending on the client’s cultural and legal preferences.
Do Liechtenstein trusts need to be registered or made public?
Only to a limited extent. Liechtenstein requires that any trust intended to last more than 12 months be at least notified to the authorities (entry in the Commercial Register). This registration is usually just a formal record of the trust’s existence; the full trust deed can be kept confidential. In fact, Liechtenstein trusts often file a short form or abstract rather than the detailed trust instrument, so the identities of settlors and beneficiaries remain private. If a trust is turned into a trust enterprise (Trust reg.) with legal personality, then its trust deed is filed and accessible in the Public Register, but sensitive details (like beneficiary provisions) can be put in a private by-law. In sum, there is a registration step for long-duration trusts, but it strikes a balance between oversight and confidentiality – the public isn’t privy to the beneficial ownership just from the register.
Can foreigners set up trusts or foundations in Liechtenstein?
Yes – Liechtenstein’s trust and foundation regimes are expressly designed for international clients, and the vast majority of these entities are founded by foreigners. There are no nationality or residency requirements for settlors of a trust or founders of a foundation. However, a Liechtenstein trust must have at least one trustee who is a licensed Liechtenstein fiduciary professional. This means a foreign client will appoint a local trust company or qualified trustee to administer the trust, ensuring compliance with Liechtenstein law and regulations. Foundations similarly require a local representative (such as a board member in Liechtenstein) and must be registered with the Liechtenstein Registry. With these local professional requirements in place, Liechtenstein welcomes foreign private clients – the legal framework was historically created to serve international families, given Liechtenstein was the first civil-law country to adopt the trust concept in 1926.
How are Liechtenstein trusts and foundations used in succession planning?
They are key tools for international estate and asset succession planning. A Liechtenstein trust allows a settlor to transfer assets into a managed structure that will outlive them, with beneficiaries (e.g. children, charities) who can receive benefits per the trust deed’s terms. Because the trust isn’t a part of the settlor’s personal estate after transfer, it can help avoid probate and, in some cases, mitigate forced-heirship rules (depending on applicable inheritance law). A Liechtenstein foundation, being a legal entity, is often likened to a “family holding company” or private family foundation: it holds assets and administers them according to the founder’s charter and by-laws, which can specify succession of benefit for generations. Typically, foundation beneficiaries have rights defined by the statutes, and those rights don’t automatically go to their personal heirs – for example, a beneficiary’s death usually means the foundation’s next designated beneficiary (and not the deceased’s heirs) receive benefits. This feature allows the founder’s wishes to prevail over external inheritance claims. In short, both trusts and foundations in Liechtenstein offer continuity, control, and asset protection across generations, and they can be tailored to complex cross-border family situations in ways a simple will might not.
How are disputes involving Liechtenstein trusts or foundations resolved?
Disputes related to Liechtenstein trusts or foundations – such as a beneficiary challenging the management of a trust, or an heir contesting the transfer of assets into a foundation – are generally resolved by the Liechtenstein courts. Liechtenstein is internationally renowned for its trusts and foundations, and consequently its courts have deep experience in this field. Any litigation typically takes place in Vaduz under Liechtenstein law, given that these structures are governed by Liechtenstein statutes or trust deeds. The court of first instance has jurisdiction, and decisions can be appealed up to the Supreme Court. Notably, trust and foundation disputes often involve cross-border elements (e.g. foreign beneficiaries, assets abroad). Liechtenstein courts will handle the core issues, and if needed can work with foreign courts for evidence or asset freezing orders. It’s worth mentioning that many modern foundation statutes include arbitration clauses for internal disputes, which means certain conflicts might be referred to private arbitration in Liechtenstein instead of court – this can keep family matters out of the public eye. However, not every dispute can be arbitrated (for example, questions about the removal of a foundation council member or the validity of a trust might still end up in court if public interest mandates it). In any event, whether in court or arbitration, having counsel versed in Liechtenstein trust law is essential. Our firm’s expertise in this area is well-recognized – for instance, Timo Frick co-authored the Chambers Global guide on Liechtenstein dispute resolution – which reflects our ability to navigate the nuanced issues these disputes present. We aim to resolve such conflicts efficiently, often through negotiated settlements if possible, to preserve family wealth. But if litigation is necessary, clients can be confident that Liechtenstein’s judiciary will apply the law meticulously and that we can leverage our procedural experience (including understanding of confidentiality provisions and interim relief) to protect our client’s interests throughout the process.
How do you structure philanthropy so it remains workable and defensible under scrutiny?
Effective philanthropy is governance first: clear purpose, decision rights, conflicts rules, and documentation that creates a reliable audit trail. We design implementable grant-making mechanics (who decides, on what basis, with which records) and align them with service providers and banking requirements, so the structure remains operable when tested by stakeholders, auditors or adverse parties.
What does a robust open-source funding programme look like in practice?
A robust programme turns intent into repeatable process: eligibility criteria, selection workflow, milestone-based payouts where appropriate, and clear reporting obligations. For open-source, we also map the interface to IP/licensing and contributor dynamics, and document decisions in a way that reduces discretion, misunderstanding and later disputes.
Can grants be made cross-border and/or in digital assets?
Yes — but cross-border execution must be designed around sanctions/AML/CFT touchpoints, recipient onboarding where required, and clean recordkeeping. Where digital assets are used, the focus shifts to controllable payment rails, approval mechanics, and documentation that remains bank- and audit-ready. We typically coordinate the legal framework with tax and local counsel as needed to keep the implementation defensible.
Confidential, pragmatic counsel.
If you are setting up, restructuring, or facing a dispute within a private wealth structure, I provide clear options and implementable solutions — with early attention to documentation quality, governance mechanics, and cross-border enforceability.