The Breach of Trust doctrine under Liechtenstein Trust Law and its impact on the preservation and enforcement of beneficiaries’ rights

Abstract

Abstract In a recent decision, the Liechtenstein Supreme Court has clarified which remedies the discretionary beneficiaries of a Liechtenstein trust have or don't have, if a trustee violates his duties under the law or the trust deed. While the Supreme Court has restricted the rights of discretionary beneficiaries in that regard, it has at the same time pointed to alternative means for them to hold the trustee accountable. One of these means is the possibility to claim damages from the trustee for breach of trust. This article analyses the doctrine of a breach of trust under Liechtenstein Trust Law and examines the conditions for and modalities of such claim by which a discretionary beneficiary can hold a trustee personally liable if he is acting in breach of his duties.