Moving a Trust FAQ: Relocating an Existing Trust

A moving a trust FAQ is most useful when it separates what is a matter of law from what is a matter of paperwork. Relocating a trust usually means changing the place where it is administered, the trustee, or both, and sometimes the law that governs it. Each of these has its own rules, and the answer often depends on the trust deed, the settlor's and beneficiaries' countries of residence, and the nature of the assets. What follows is general information, not advice on your situation.

Can a trust move at all?

What does "moving a trust" actually mean?

A trust is not a company with a registered office that can be transferred. It is a relationship in which a trustee holds assets for beneficiaries. "Moving" therefore describes a change in one or more of its components: the trustee who administers it, the place of administration, the governing law, or the custody of the assets. These can be changed separately, and many relocations change only some of them. The distinction is explained in governing law versus seat of administration.

Does the trust deed allow a move?

Start with the deed. Many modern deeds contain a power to change the proper law or the place of administration, and some contain a flee clause that triggers a move in defined circumstances. Older deeds may be silent. When the deed says nothing, the answer depends on the governing law and sometimes on the consent of the beneficiaries or the approval of a court. See the glossary entries on flee clauses and the proper law of a trust.

Can a trust be moved if the settlor is no longer alive?

Yes, in principle, but the settlor's own powers cannot be exercised. Whoever holds the power to appoint or remove the trustee, such as a protector, or the trustee acting under the deed, takes the decision. Where nobody holds the power, an application to the competent court may be the only route. The analysis is individual.

Is moving a trust always the right answer?

No. Sometimes changing the trustee while leaving the governing law in place is enough, and sometimes the trust should stay where it is. A review of whether the trust still fits its seat can compare the options before any step is taken.

Law, courts and approvals

Is court approval needed?

It depends. Where the deed gives the trustee or protector a clear power and the beneficiaries are not affected, a court is often not involved. Where the deed is silent, where beneficiaries are minors or unborn, or where the trustee has doubts, the trustee may ask a court for directions or approval. The need for approval is a question for the law governing the trust and for the courts of the current seat.

Does a change of seat change the governing law?

Not automatically. A trust can be administered in Switzerland while remaining governed by the law chosen when it was created, provided that law allows this. Changing the governing law is a separate act and often needs its own power or consent. The legal mechanics of moving a trust set out the usual sequence.

Will Switzerland recognise a trust that moves there?

Switzerland is a party to the Hague Convention on the law applicable to trusts and on their recognition, which is the basis for recognising a trust governed by a foreign law. Recognition is not the same as having the trust law of one's choice, and it has limits, for example for mandatory rules. See the Hague Trusts Convention explained.

Can forced heirship rules affect a trust after it moves?

They can. A move does not by itself remove claims that heirs may have under the law of the settlor's last residence or under the law governing succession to particular assets. This is one reason to review the structure before, not after, a relocation.

What happens to claims by creditors or beneficiaries?

Existing rights should not be lost because a trust changes trustee or seat, and a properly drafted deed of appointment preserves the continuity of the trust. Whether a transfer could be challenged is a matter for the law of the old and the new seat, and it needs individual analysis.

Tax and residence

Does moving a trust change its tax residence?

A trust has no legal personality in Swiss law and is not a "foreign legal entity" within the meaning of Art. 49 para. 3 LIFD; the trustee holds the assets on a fiduciary basis. Tax treatment in Switzerland therefore follows the settlor and the beneficiaries rather than the seat, and it depends on the type of trust. Tax residence elsewhere is a separate question governed by each country's own rules.

How does Swiss practice treat a revocable trust?

Under the Swiss tax authorities' circular, a revocable trust is treated as transparent. The assets and their income remain taxable with the settlor at the settlor's domicile, and a distribution to a beneficiary is treated as a gift, with the cantons setting the applicable tax level.

And a fixed interest trust?

For an irrevocable fixed interest trust, the beneficiary may be treated like a usufructuary, so assets and income are attributed to the beneficiary for tax purposes. The creation is a gift from the settlor to the beneficiary. Distributions are in principle taxable income under Art. 16 para. 1 LIFD, and the beneficiary is subject to wealth tax on their share. See fixed interest trusts and where they sit best.

And an irrevocable discretionary trust?

The answer turns on where the settlor lived when the trust was created. If the settlor was domiciled in Switzerland at that moment, assets and returns stay attributed to the settlor, with the same consequences as for a revocable trust. If the settlor was domiciled abroad at that moment, the assets are attributed neither to the settlor nor to a beneficiary.

Which official texts set out this practice?

The Swiss Tax Conference published circular 30, "Taxation of trusts", on 22 August 2007, prepared with the Federal Tax Administration. Circular no. 20 of the Federal Tax Administration of 27 March 2008 declares its provisions also applicable to direct federal tax and withholding tax and reproduces it in an annex. Cantonal practice can add detail, so a cantonal check is part of any analysis.

Does a beneficiary moving to Switzerland get special treatment?

Some foreign nationals who take up residence may be eligible for lump-sum taxation under Art. 14 LIFD. The conditions are cumulative: no Swiss nationality, unlimited tax liability for the first time or after an absence of at least ten years, and no gainful activity in Switzerland. Where there are spouses, both must meet the conditions. The minimum annual tax base under Art. 14 para. 3 LIFD, as at 1 January 2026, is the highest of several amounts, including CHF 435,000 set by a Federal Department of Finance ordinance of 10 September 2025 on cold progression. Whether this regime suits a person with trust interests is a question for an adviser.

Swiss regulation of the trustee

Does a Swiss trustee need a licence?

Professional trustees in Switzerland are regulated under the Financial Institutions Act (FinIA, LEFin, FINIG). FINMA grants the authorisation; day-to-day checks that the conditions are still met are carried out by a supervisory organisation, itself authorised and supervised by FINMA. The details are in Switzerland as a trust seat.

What capital must a regulated trustee hold?

Under Art. 22 FinIA, wealth managers and trustees must hold minimum capital of CHF 100,000, paid up in cash, and must provide appropriate security or professional liability insurance. This is a regulatory requirement for the trustee, not a charge to the trust.

Must changes at the trustee be reported?

Changes in the facts on which the authorisation rests must be notified to the supervisory organisation in advance. This matters for a relocation because the receiving trustee's onboarding, systems and record-keeping must be in place before assets and files arrive.

Does a Swiss trustee carry out anti-money-laundering checks?

Yes. A Swiss trustee is subject to the AMLA (LBA, GwG) and must identify the settlor, the beneficiaries and the controlling persons, and understand the source of the assets. Expect a detailed due diligence process before acceptance.

Banks, assets and records

Can the existing banks stay?

Sometimes. A bank account is held by the trustee, so when the trustee changes, the account holder changes too, and the bank must carry out its own checks on the new trustee. Some banks continue the relationship; others ask for a new account opening. Banking decisions are the bank's, not the trustee's. Read more on banking and custody for trust assets by seat.

Do the assets have to physically move?

Not always. Securities, real estate and shares in companies can stay where they are while legal title passes to the new trustee. Real estate and registered assets follow the rules of the place where they are located, called the situs, which may require local steps. Cash and portfolios can be transferred or retitled.

What documents are needed?

Typically the trust deed and all amendments, any deed of appointment and retirement, letters of wishes, accounts, minutes of past decisions, and identification and source-of-assets documents. A full list is in documents to gather for a trust relocation.

Who must hand over the trust's records?

The outgoing trustee holds the trust's records and normally transfers them to the successor. Disputes about files, outstanding liabilities or indemnities are among the more common sources of delay and should be dealt with in the deed of appointment.

How long does a relocation take?

There is no fixed period. It depends on the powers in the deed, whether a court is involved, the bank's onboarding, and the assets concerned. Treat any timetable as an estimate that the incoming trustee can give only after reviewing the file.

What does it cost?

Fees depend on the structure of the trust, its assets and the work needed, and they are indicated after a confidential assessment. The relocation of a trust is not priced in a standard way.