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Charitable and private trusts

The law expressly distinguishes between charitable and private trusts. Unless it can be established that the trust assets serve wholly or mainly charitable purposes or beneficiaries, the trust is treated as private. This classification determines the requirements for registration, supervision and persons entitled to information.

Who can be a person entitled to information?

As a rule, the settlor designates at least one person entitled to information and a successor in the trust documents. Candidates include in particular the settlor, beneficiaries or other suitable individuals and companies.

The requirements regarding independence and expertise differ depending on the category of person. In some cases, the trust documents may provide otherwise. Where an auditor takes on the role, the statutory requirements on independence and qualification remain binding.

The trustee must appoint the designated persons entitled to information without delay once they assume this position and inform them in writing within 30 days of their position and their rights and duties.

Duties and rights

The person entitled to information has comprehensive rights to information and inspection as well as standing to file motions and act as a party in court supervisory proceedings.

As a rule, they review annually whether the trust assets are administered and used in accordance with the trust documents and report on this. This review duty does not apply where the settlor or all beneficiaries hold the position. Other beneficiaries have limited rights to a confirmation or to be informed of a report made to the court or authority.

Appointment for existing private trusts

A transitional period until 31 December 2027 applies to private trusts existing on 1 July 2026. The adjustment follows a statutory order:

1. The settlor may supplement the trust documents, even without an existing power of amendment.
2. If the settlor has died, is incapable or cannot be reached, the trustee may make an amendment, subject to court approval, based on the settlor's intentions as evidenced by documents.
3. If no such intention can be established, all beneficiaries with a current entitlement must be appointed as persons entitled to information.
4. If a valid appointment is not possible by these means, the trustee must apply to the court to appoint an auditor as the person entitled to information.

By the deadline, the required amendment, appointment or application must have been made; a court decision therefore need not always be available yet. In addition, the prescribed notifications or deposits must be made with the Office of Justice.

Charitable trusts

For charitable trusts, the Foundation and Trust Supervisory Authority (STIFTA) acts as the person entitled to information by operation of law.

Charitable trusts are subject to state supervision and, as a rule, to an annual audit by a court-appointed auditor. Statutory exemptions remain reserved.

Existing charitable trusts must be notified to STIFTA by 31 December 2026. Charitable trusts that have so far only been deposited must also apply for entry in the Commercial Register within this period.

Our recommendation

Trustees should clarify early which appointment route applies to their existing trusts and which steps are required within the transitional period, taking into account succession and responsibility for notifications and deposits.

AREVA acts as person entitled to information and accepts independent audit mandates for charitable trusts. We would be pleased to discuss a possible mandate and the next steps with you and your existing legal advisers.