Status of a settlor of a trust and of a founder of a private foundation in Liechtenstein Law

Abstract

A successful transfer of private wealth to the next generation is important not only to wealthy families but also for the economy at large. There are various levels of asset protection and some of them are available to almost any businessperson. Private foundations have been for a long period conventional asset protection vehicles all over the world as much as trusts are. This article outlines the main features of trusts and private foundations and a special status of the settlor of a trust and the founder of a private foundation in Liechtenstein law. The purpose of this research is to analyze the legal status of the founder of a trust and the founder of a private foundation and to analyze a trust and a private foundation as efficient legal tools to preserve the assets of a wealthy natural person. The objective dimension of the study is the institutional and legal structure of a trust and a private foundation in the chosen jurisdiction. The subjective dimension of the study is the aggregate of international and national legal aspects that are fundamental in determining the optimal structure for protecting the assets of an individual.