Liechtenstein nondiscretionary trust safe?

[towel]

Hello everyone
Looking into setting up a nondiscretionary trust in liechtentein for asset protection, trust will hold shares of company. No CRS should be goal.
Trustee would be a known trust company based in Liechtenstein. Is this setup safe? What do I have to keep in mind so I still have control over the trust and company?
I appreciate your answers.

 

[Henn and Rich]

I would opt for a foundation in lieu of a trust in Liechtenstein as the trust would not be a legal entity, while the foundation would be. A legal entity would provide a further level of asset protection.

About CRS - there will always be some kind of information that will be exchanged. Complete avoidance of CRS is very difficult nowadays.

If you are looking for a non-discretionary foundation with fixed beneficiaries for asset protection - you can always implement a Protector - an independent person who controls/authorizes the activities/actions of the foundation council members.

What to keep in mind:

For a foundation in Liechtenstein, there are 2 taxation options to consider:

1. lump sum taxation CHF 1,800 for private asset structure
2. income taxation 12.5% on the net profit

in order to receive the lump sum taxation, it must meet some requirements of the tax authorities. The chance to obtain this status is usually very likely. If for whatever reason, it is not applicable - the 12.5% would apply. Capital gains, dividends and rental income are tax free in Liechtenstein.

Hope that helps a bit thu&¤#

 

[towel]

Henn and Rich said:
I would opt for a foundation in lieu of a trust in Liechtenstein as the trust would not be a legal entity, while the foundation would be. A legal entity would provide a further level of asset protection.

About CRS - there will always be some kind of information that will be exchanged. Complete avoidance of CRS is very difficult nowadays.

If you are looking for a non-discretionary foundation with fixed beneficiaries for asset protection - you can always implement a Protector - an independent person who controls/authorizes the activities/actions of the foundation council members.

What to keep in mind:

For a foundation in Liechtenstein, there are 2 taxation options to consider:

1. lump sum taxation CHF 1,800 for private asset structure
2. income taxation 12.5% on the net profit

in order to receive the lump sum taxation, it must meet some requirements of the tax authorities. The chance to obtain this status is usually very likely. If for whatever reason, it is not applicable - the 12.5% would apply. Capital gains, dividends and rental income are tax free in Liechtenstein.

Hope that helps a bit thu&¤#
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Hi! Thank you for the information, this is more or less what my lawyers told me so your information is accurate. They didn't recommend a foundation, because it is more stiff than the trust. The trust can include an exit clause that can come in handy (if you know you know)