Disputes over Liechtenstein foundations

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Liechtenstein foundations are widely used by international families, often with bank accounts in Switzerland. When family members disagree, disputes usually turn on information, the conduct of the foundation board and the interpretation of the foundation documents.

The legal framework

Liechtenstein foundation law is contained in the Persons and Companies Act, whose foundation provisions were comprehensively revised with effect from 2009. Private-benefit foundations are in many cases not subject to ongoing supervision by the foundation supervisory authority, unless the founder opts for it, while public-benefit foundations are supervised. Foundations established before the revision may still be affected by transitional rules, so the date of establishment and later amendments matter.

Information rights of beneficiaries

Beneficiaries generally have a statutory right to information and inspection concerning their rights, including access to the foundation documents and, to an extent, the accounts. These rights can be restricted in certain constellations, for instance where the founder has reserved the right to revoke the foundation, and the details depend on the documents and on whether the person is a beneficiary with an entitlement or merely a potential recipient. Where the board refuses information, beneficiaries may apply to the Liechtenstein courts.

Court supervision

The Liechtenstein courts may, on application, take supervisory measures in respect of a foundation, typically in non-contentious proceedings. Such measures may include ordering information, reviewing board decisions, or in serious cases removing members of the foundation board. The court will generally examine whether the board acted in accordance with the foundation documents and the purpose of the foundation.

Typical claims

Frequent issues include disputes over the validity of amendments to by-laws, the exercise of discretion in distributions, conflicts of interest of board members and claims that assets were transferred to the foundation to defeat heirs or spouses. Heirs in other countries may argue that contributions to a foundation should be included in their compulsory portions, which raises questions of applicable law and of the recognition of judgments in Liechtenstein. Assets held with Swiss banks add a further layer, since any measures against those assets will require a basis in Swiss procedural law.

What pays off in practice

Obtain the full set of documents including by-laws, supplementary by-laws and board resolutions.
Clarify your status as beneficiary, since information rights depend on it.
Plan for two jurisdictions when foundation assets are booked with Swiss banks.

How Ressos Legal helps

I advise beneficiaries, founders and board members on disputes involving Liechtenstein foundations with Swiss assets and work with Liechtenstein counsel where proceedings there are needed. Contact me for a first conversation.

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of October 2026.

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Dr Alexander Ressos, TEP

Rechtsanwalt/Attorney-at-Law

I am a Swiss attorney-at-law and also admitted as a solicitor in Hong Kong and in England & Wales, with almost 25 years of experience.

Together with my multilingual team, including Chinese, Japanese, Korean, Russian, Ukrainian and French native speakers, I advise companies and their owners from around the world on the full range of banking, corporate, commercial and tax law matters in Switzerland, including international tax planning, fiduciary services, and legal family office services including immigration & relocation or real estate investments. My practice has a particular focus on clients from growth and frontier markets in Greater China, Central Asia and the Caucasus, the rest of Asia, the Middle East, Africa and Latin America, and I equally advise clients from Europe and North America. Through an affiliated Swiss trust company, we also take care of the incorporation and ongoing administration of their companies and other structures, including accounting, tax returns and corporate secretarial services, and I serve as a professional director where required. With the support of a network of first-class cooperation partners, I also implement solutions worldwide.

My approach is to act as a trusted advisor who works directly with decision-makers, on an equal footing: I start from what you want to achieve and shape every structure, contract and tax decision around your commercial goals and how it improves your after-tax return. As “lawyers who make it happen”, my team and I stay involved until your company is set up, your structure is in place and your transaction has closed, and we remain available for any follow-on work that may be required. You benefit from bespoke solutions and personal attention, and sound, friendly and practical advice. We are not the lowest-cost provider in the market, nor do we intend to be; our aim is to deliver well-founded, proper solutions and excellent value for money.

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