Succession Planning in Liechtenstein for Families and Businesses

It does not remove the forced share. The dedication of assets to a foundation counts as a gift (ABGB § 778(2) no. 4), and heirs or creditors can challenge the transfer like a gift (PGR Art. 552 § 38(1)). A true discretionary beneficiary position is excluded from gift treatment (§ 778(3)). A lawyer assesses your family's position.

Yes. ABGB § 778(2) no. 4 lists the dedication of assets to a foundation as a gift, and no. 5 does the same for the beneficiary position as far as the deceased dedicated his assets to the foundation. Gifts are added to the estate and credited on the donee's own money forced share (§ 778(1)).

It depends on who received it. On a forced heir's request, gifts outside the forced-heir circle are added back only if actually made in the last two years before death (ABGB § 779(1)). Gifts inside the circle are added back on request of a forced heir or an heir (§ 780(1)); the two-year limit is not repeated there.

Claims to set aside a will, to demand the money forced share and to pursue a donee for a shortfall must be brought to court within three years of knowing the relevant facts (ABGB § 1487a). Independently of knowledge, these rights lapse thirty years after the death. The clocks do not start at the dedication.

The founder may reserve revocation and amendment rights in the foundation deed; these rights cannot be assigned or inherited (PGR Art. 552 § 30(1)). The assets of a revocable foundation are attributed to the founder for wealth tax (SteG Art. 9(4)). A licensed Liechtenstein trustee, named in your engagement letter, forms the foundation.

A foundation may run a commercial business only if it directly serves its common-benefit purpose or a special law allows it. A private-benefit foundation may also do so where proper investment and management of its assets requires it (PGR Art. 552 § 1(2)). How this applies to shareholdings is not stated here; a lawyer reads it for your case.

In the cases the statute names, yes. The heir may ask for deferral of the forced share, or payment in instalments, where immediate payment would be an unreasonable hardship, in particular if it would force the sale of a business asset on which the heir and family live economically (ABGB § 783a(1)). The statute states no outcome in advance.

Not if it was created by will or inheritance contract: the heirs have no right to revoke it, even before registration (PGR Art. 552 § 23(1)); revocation follows the succession-law rules (§ 22 no. 3). A right the founder reserved cannot be inherited (§ 30(1)). Heirs or creditors can still challenge the transfer like a gift (§ 38(1)).

A foundation can be created by will or inheritance contract in the form succession law requires (PGR Art. 552 § 15(1)). It is registered or deposited only after the founder's death; under an inheritance contract, after one founder's death unless it says otherwise (§ 15(2)). A lifetime foundation needs a declaration in written form with certified signatures (§ 14(1)).

Succession follows the personal statute of the deceased at the time of death (IPRG Art. 29(1)). A foreign deceased may choose a home law, or the law of his last habitual residence, by will or inheritance contract (Art. 29(3)). A claim against third parties also needs the law governing the transfer to allow it (Art. 29(5)); hence foreign counsel.

The Tax Act's list of taxes (SteG Art. 1(1)) names no inheritance or gift tax, and inheritances, bequests and gifts are exempt from the acquisition tax (Art. 15(2)(c)). A dedication to a foundation can bear a 3.5 % dedication tax where the Art. 13(1) conditions are met. Tax in another State is for counsel there.

Professional advice on the law of succession is reserved to lawyers (RAG Art. 8(1)(a)). Forming a foundation for third parties, council mandates and tax advice are trustee activities (TrHG Art. 2(a), (b), (d)). Portfolio management is for a licensed asset management company or a bank (VVG Art. 3(2), Art. 2(2)). LFT prepares and coordinates. Pricing is on request.