LIECHTENSTEIN Law and Practice Contributed by: Thomas Plattner and Fabian Jenny, Ospelt & Partner Attorneys at Law Ltd.
error. The last Will can be handwritten without wit - nesses, typed in front of three independent witnesses who are not related to the heirs, or declared before the court, even in one’s own words before the court. Such an oral Will is recorded in a court protocol. The heir receives the assets and debts unless declared otherwise. 4.3 Transfer of Partial Interest Liechtenstein levies neither gift nor inheritance tax. However, Liechtenstein levies a wealth tax or property tax ( Vermögenssteuer ). The partial interest is part of the wealth of the receiving taxpayer. Such asset is valued at fair market value (no discount). Trends driving dispute resolution are moving towards arbitration in certain areas. Although Liechtenstein has a good judicial system with three court levels, arbitra - tion is an alternative. Disputes between private foundations and trusts and the beneficiaries or other persons are subject to the Liechtenstein Princely Courts ( Fürstliche Gerichte ), ie, the court of first instance ( Fürstliches Landgericht ), the High Court ( Fürstliches Obergericht ) and the Supreme Court ( Fürstlicher Oberster Gerichtshof ). All courts have distinguished jurisprudence on private founda - tions and trusts, beneficiary rights and responsibility of the Foundation Council or the trustee. Liechten - stein has a newly developed arbitration association and arbitral tribunals for arbitration of foundation law. As a consequence of the long history of foundation, Liechtenstein arbitral judges are highly competent in the respective areas. The business judgement rule (see 6.2 Fiduciary Lia- bilities ) is part of Liechtenstein civil law. Most recently, the Liechtenstein Princely Supreme Court has ruled on: • the legal position of the beneficiary and the official involvement of a “material” party; 5. Wealth Disputes 5.1 Trends Driving Disputes
• the responsibility of the foundation board in asset management in the sense of a fault of assumption; • the dissolution and liquidation of a foundation due to divorce; • the insurer’s duties of disclosure and information towards the foundation and the beneficiary; • the beneficiaries’ rights to information and disclo - sure; and • the requirements for amendments to the articles of association by foundation bodies. 5.2 Mechanism for Compensation Liechtenstein is subject to the civil law on damag - es. Damages need to be verified by the claimant to receive compensation. Liechtenstein does not recog - nise punitive damages. Compensation for damages can be granted by the Liechtenstein courts or the Arbitral Tribunal after a proceeding. Save for Austria and Switzerland, Liech - tenstein is not party to any multilateral agreement on enforcement of legal titles. Liechtenstein entered into a bilateral agreement on the enforcement of legal titles with Austria and Switzerland only. As a consequence, it is difficult to receive compensation with a foreign legal title. Liechtenstein civil procedure law recog - nises a special proceeding on the law enforcement of foreign legal titles. Such proceeding is a new civil proceeding regarding the validity of the foreign title. 6. Roles and Responsibilities of Fiduciaries 6.1 Prevalence of Corporate Fiduciaries Liechtenstein has a well-developed system of corpo - rate fiduciaries. These professionals are members of the Liechtenstein Chamber of Trustees and subject to strong corporate governance and disciplinary guide - lines ( Standesrichtlinien ). Currently, approximately 300 trustees and trustee services companies are registered with the Financial Market Authority. Small flexible firms, mid-size firms with a range of services (corporate services, accounting, and legal advice) and big multi-service companies exist. All members of the Liechtenstein Chamber of Trustees are subject to very high standards of conduct and execution of profes - sional services.
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