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If you have inherited a trust, what to do about the trustee is rarely the first thing on your mind, yet it is the decision that shapes everything else. The trustee holds the assets, applies the deed and answers to you as a beneficiary or as the person now standing where the settlor stood. You did not pick them, and nobody asked you. This page looks at the situation from that single angle: what to establish first, how to judge the trustee you have, and when to keep, supplement or replace them. It is general information, not advice on your own case.
Why a death or a handover raises the trustee question
A trust usually changes character at the moment someone dies. A revocable trust, which the settlor could amend or end, may become irrevocable. Powers that the settlor kept for themselves lapse or pass to someone else. A protector, if there is one, may suddenly hold more weight than before. The trustee, who dealt with a single familiar person for years, now faces several people with different expectations.
For you, this means the relationship has no history. The trustee knew the settlor's habits and unwritten wishes; they do not yet know you. Neither of you is at fault, but the first conversation sets the tone for years.
Example: a family established in Lausanne learns that a parent's trust, run by a trustee they have never met, is now irrevocable. The three adult children are all beneficiaries, one lives abroad, and nobody has seen the deed. Their first task is not to complain or to switch, but to find out where they stand.
First, identify the kind of trust you hold
The type of trust determines what you are entitled to, what the trustee may decide alone and how the trust is taxed. Swiss tax practice, set out in circular 30 of the Swiss Tax Conference and taken over for federal direct tax and withholding tax by a federal circular, distinguishes the main types. In Switzerland a trust has no legal personality of its own: the trustee holds the assets as fiduciary owner.
| Type of trust | What it means for you | Tax treatment in outline |
|---|---|---|
| Irrevocable fixed interest | Your entitlement is set in the deed; you may be treated like a life tenant | Assets and income are attributed to you; distributions are in principle taxable income, and you bear wealth tax on your share |
| Irrevocable discretionary | The trustee decides whether and when to distribute | Depends on where the settlor lived when the trust was created: attribution stays with a Swiss-domiciled settlor, but not to anyone if the settlor lived abroad at that time |
| Revocable | The settlor could take the assets back | Transparent treatment: assets and income stay taxable with the settlor; a distribution to a beneficiary is a gift, at a rate set by the cantons |
Whether a given trust fits one of these boxes, and what follows for you given where you live, calls for an individual analysis. Detailed tax and succession questions are outside the scope of this page; here the point is only that the trustee's role changes with the type, so your questions to them should too.
The first weeks, in order
Do not rush to a decision. A calm sequence serves you better than a quick one, and most trusts have no deadline that forces an early choice. Some, however, carry decision points in the deed or in local law, so find out before you assume.
The documents in this sequence are the ones listed in the documents to gather before changing trustee. It is worth gathering them even if you end up changing nothing.
What you are entitled to ask
What you may see depends on your position and on the deed. A beneficiary with a fixed entitlement can usually expect more than one who might receive something at the trustee's discretion. Read the page on the information your trustee must give you and what a trustee owes the beneficiaries before the first meeting, so that you know what is reasonable to request.
Useful questions for that meeting:
- Who holds which powers now: appointment and removal of the trustee, distributions, investment?
- Is there a protector, and what can they veto or change?
- Was there a letter of wishes, and how does the trustee use it?
- Who looks after the trust day to day, and who is the named contact when that person is absent?
- Is the trustee supervised, and by whom?
- How are the trustee's fees structured, and when will they be explained to you?
- What happens if the trustee retires, falls ill or dies?
Fees depend on the structure of the trust and are indicated after a confidential assessment; ask for the fee basis in writing rather than assuming it.
Judging a trustee you did not choose
Treat the inherited trustee the way you would treat a candidate. The method is the same as for a new appointment, only with real records to read. Start with whether they are authorised: the guide on FINMA and SO-FIT approval explains what the supervisory status of a Swiss trustee does and does not tell you. Then work through due diligence on your trustee and check the answers against the accounts and minutes.
Signs that deserve attention include slow answers, gaps in the minutes, accounts that arrive late or not at all, and a trustee who treats the deed as a private matter. One of those alone is a prompt to ask, not a verdict. Several together may justify an independent review of the trust and its trustee.
Keep, add or replace
You have three realistic options, and none is the default.
Keep. If the trustee is authorised, responsive and open about the records, continuity has real value. They know the assets, the family history and the settlor's intentions. Keeping them while you introduce yourself and agree how you will communicate is often the sensible path.
Add. The deed sometimes allows a co-trustee or a protector. This can balance a trustee who is competent but distant. It also adds a second voice that must agree, so it is a trade-off rather than an upgrade.
Replace. If the trustee is unresponsive, conflicted or no longer suited to the assets, the deed or the governing law will say who can remove them and who may appoint a successor. Changing trustee step by step sets out the sequence, and the page on appointing a trustee explains how a new candidate is assessed. Power to replace may sit with a protector, with beneficiaries acting together, or with a court, so do not assume it is yours.
If the trustee in question has died or retired, a different set of questions applies; see what to do when an individual trustee has died or retired.
What a trust cannot do for you
A trust is a legal arrangement, and it offers protection that has limits. It does not remove tax duties that follow from where you live, it does not override the deed, and it does not turn a poor relationship with a trustee into a good one. It cannot make a family agree. What it can do is separate the management of assets from the benefit of them, and give that management to a professional bound by duties.
If you conclude that the arrangement no longer serves you, ending the trust is possible in some cases; the page on ending a trust and distributing it covers how that works in practice.
Frequently asked questions
Do I have to accept the trustee I inherit?
Not automatically, but you cannot simply dismiss them either. The deed and the governing law determine who can remove a trustee and appoint another. In many trusts that power rests with the protector or with named people, and beneficiaries may need to act together or ask a court.
Does the trust become irrevocable when the settlor dies?
Often, yes, but it depends on the deed. A revocable trust loses its revocability because the person who could revoke it is gone. The deed may say what happens to reserved powers and who takes over. Ask the trustee for the relevant clauses rather than relying on a summary.
Can I see the trust deed?
A beneficiary frequently has a stronger claim to see the deed and the accounts than someone with only a remote or contingent interest. The extent depends on your position and the applicable law. Put the request in writing and keep the reply.
Should I act quickly?
Usually there is no reason to hurry, and a hasty change can cost more than it solves. Some deeds or tax positions do impose timing, so check first. Gather documents, read the records and speak to the trustee before deciding.
Will changing the trustee change the tax position?
It may, or it may not. The tax treatment depends on the type of trust, the settlor's domicile when it was created and where you live. Moving the trust to a new trustee is a separate act from the original tax analysis, so have it assessed individually before acting.
What if the trustee refuses to give me information?
Ask again in writing, citing the deed and your position as beneficiary. If the answers stay evasive, an independent review can establish what exists, and the dispute between beneficiaries and the trustee page covers the next steps.
Who should help me decide?
Someone independent of the trustee: a lawyer or tax adviser familiar with trusts in your country of residence, and, if you want a view on the trusteeship itself, a reviewer who has no interest in the outcome.
Sources
Considering a trust, or reviewing one?
Describe your situation in a few lines. A Geneva-based trustee reviews it in confidence and replies in writing.