Liechtenstein report—respecting settlor/founder intention: If wishes were horses, would trustees ride?

Abstract Most Liechtenstein foundations and trusts are founded and settled by nominees. Although at first, only the nominees were considered to be able to exercise reserved powers, the new 2009 statutory foundation law shifted such powers to the effective founder, i.e. the nominee’s “client”, and, most recently, the Liechtenstein Supreme Court applied the same principles on trusts in favor of settlors. Founders or settlors may exert control over the foundation or trust in various ways. However, economic founders in most cases reserve such powers not for themselves, but for the foundation board which is required to seek their advice on their historical intent. Like letters of wishes, which are equally relevant and standard practice, such advice will guide the board when excluding or appointing beneficiaries or varying the foundation documents in other ways.