Switzerland's trust legislation and legal framework

Switzerland's main trust provisions appear in Chapter 9a of its Federal Act on Private International Law. The chapter addresses trust jurisdiction, applicable law, register notices and recognition of foreign decisions.

The principal trust statute

The statute regulates international matters, including Swiss court or authority jurisdiction, applicable law, and conditions for recognizing and enforcing foreign decisions. Its opening clause also lists bankruptcy and arbitration. The trust chapter is therefore one subject within a broader private international law act.^[2]

Organization of the trust chapter

Chapter 9a is organized into five labeled provisions, Articles 149a through 149e. The headings identify a definition, jurisdiction, applicable law, special publicity rules, and foreign decisions. This sequence gives the chapter a compact structure, moving from the category of trust to cross-border procedural and recognition questions.^[2]

Article 149a defines covered trusts by reference to trusts within the Hague Convention on the Law Applicable to Trusts and on their Recognition. The Swiss provision says this definition applies whether or not the trust is evidenced in writing for purposes of the Convention's Article 3.

The Convention supplies further terminology. It describes a trust as legal relationships created by a settlor, with property placed under a trustee's control for a beneficiary or a specified purpose. It also states that trust property is a separate fund and that the trustee administers, uses or disposes of it under the trust terms and legal duties.^[3]

Subjects covered by the statute

Article 149b addresses jurisdiction in trust matters. It gives effect to a forum choice made under the trust terms when that choice, or authority to make it, is recorded in writing or in another form that allows proof through text. If the designated court is stated to have exclusive jurisdiction, the article treats it as exclusive unless the terms provide otherwise.^[2]

Where a valid forum choice is absent, or does not confer exclusive jurisdiction as described in the provision, Article 149b lists Swiss court connections. These include the defendant's domicile or habitual residence, the trust's seat, and the location of a Swiss branch for claims based on its activity. The provision also addresses designated courts where a party, the trust or a trustee has a connection to the relevant canton, or much of the trust property is in Switzerland.^[2]

Article 149c links the law applicable to trusts to the Hague Convention. It further states that the law identified by the Convention applies in specified situations where the Convention itself does not apply or where it does not require recognition of a trust. Under the Convention, a settlor's chosen law governs, and absent a choice, the law with the closest connections applies.^[2]^[3]

Article 149d covers notices or entries concerning trust relationships in specified Swiss registers. It allows a notation where trust property is registered in a land, ship or aircraft register in the trustees' names. Trust relationships concerning Swiss-registered intellectual property rights are entered in the relevant register on request.^[2]

Article 149e states conditions for recognition in Switzerland of foreign decisions in trust matters. Listed connections include a court validly selected under Article 149b, the defendant's location, the trust's seat, or the law governing the trust. The provisions address recognition as a Swiss private international law question.^[2]

Where the consolidated text appears

The official consolidated text is published on Fedlex, the Swiss federal law publication platform. The consolidated text is the Federal Act on Private International Law. For reference purposes, the trust provisions can be located in Chapter 9a, Articles 149a to 149e, within that consolidated act.^[1]^[2]

Questions and answers

What is Switzerland's main trust statute?

The principal statute is the Federal Act on Private International Law, or IPRG in its German title. Trust provisions appear in Chapter 9a, Articles 149a to 149e.^[2]

Does Switzerland have a separate act devoted only to trusts?

The Swiss federal statute places trust rules in Chapter 9a of its broader private international law act. That chapter contains five articles, numbered 149a through 149e.^[2]

What subjects do the Swiss trust provisions cover?

The chapter addresses the definition of covered trusts, jurisdiction, applicable law, register publicity and recognition of foreign decisions. The applicable-law article refers to the Hague Convention.^[2]

How does Swiss law describe a trust for this framework?

The Swiss statute refers to trusts within the meaning of the Hague Convention. The Convention describes a settlor-created legal relationship in which property is placed under a trustee's oversight for a beneficiary or a specified purpose.^[2]^[3]

Where can the consolidated Swiss trust text be found?

The consolidated Federal Act on Private International Law is on Fedlex, the federal law publication platform. The trust provisions are in Chapter 9a, Articles 149a to 149e.^[1]^[2]

Related glossary terms

Trustee: A trustee controls trust assets and manages, uses, or disposes of them for beneficiaries or a stated purpose under the trust terms and applicable law.
Substantial decisions: Substantial decisions under a trust include nonministerial choices about distributions, beneficiaries, income, principal, trustee changes, and investments.
Domestic trust: The IRS defines a domestic trust through its court test and control test, and the term appears in U.S. foreign trust reporting rules for U.S. citizens.