Compliance
KYC for trusts: which documents are required
Updated: · Leutrim Miftaraj, FLIORE · Editorial standards · Deutsche Fassung
Short answer
For a trust, banks and regulated family offices require the trust deed with all supplements, information and identification for the settlor, trustee, protector and beneficiaries or classes of beneficiaries, and evidence of the source of the assets settled. For discretionary trusts, beneficiaries are identified at the latest when a distribution is made. The letter of wishes is often requested but is not legally binding.
Why trusts are examined closely
A trust is not a legal entity. The assets belong legally to the trustee but economically to others. Who ultimately benefits and who exercises control only emerges from the trust deed. Anti-money-laundering law therefore treats everyone with a defining role as a beneficial owner: settlor, trustee, protector, beneficiaries and anyone else with control.
The documents in detail
- Trust deed with all supplements (deeds of variation, addition, appointment and retirement).
- Information and identification for the settlor, trustee (for corporate trustees a register extract and officers), protector and named beneficiaries.
- Description of the classes of beneficiaries for discretionary trusts.
- Evidence of the source of the assets settled.
- Tax classification for AEOI/CRS and FATCA, and tax residences with TIN of the controlling persons.
- Where needed, the letter of wishes and minutes of material trustee resolutions.
Bank forms in Switzerland
Swiss banks record trust information on Form T under the banks' code of conduct on due diligence (CDB). It covers, among other things, the effective settlor, the beneficiaries or classes of beneficiaries, persons with control or instruction rights such as the protector, and whether the trust is revocable. Family offices complete it anew for each bank – with identical data that can be maintained centrally.
Discretionary trusts and beneficiaries
In discretionary trusts beneficiaries have no fixed entitlement. At onboarding a description of the class, such as "descendants of the settlor", is often sufficient. Before a distribution the recipient must be identified. The family office should therefore keep a list of potential beneficiaries and release distributions only once identification is complete.
Typical pitfalls
Missing supplements to the deed, undocumented changes of trustee, a protector without identification, beneficiaries who have since come of age and owe their own information, or different information given to different banks. Each of these gaps causes queries and delays transactions.
In FLIORE
FLIORE records trusts as a separate mandate with the roles settlor, trustee, protector and beneficiaries, each with identity data, tax residences and TIN. The trust deed, supplements and letter of wishes are stored with versions in the encrypted vault; the KYC package assembles them for a bank in one PDF.
At a glance
| Core document | Trust deed with all supplements |
|---|---|
| Roles | Settlor, trustee, protector, beneficiaries, other controllers |
| Swiss bank form | Form T (CDB) |
| Letter of wishes | Often requested, not legally binding |
Frequently asked questions
Must the letter of wishes be shown to the bank?
There is no general obligation. Banks ask for it to understand the settlor's intentions. Whether and how it is provided should be agreed with the trustee, because it contains confidential family information.
Who is the beneficial owner of a trust?
Under the anti-money-laundering rules in Switzerland, Germany and Austria, all persons with a defining role: settlor, trustee, protector, beneficiaries and anyone else with control.
What applies to a corporate trustee?
The trustee company is recorded with a register extract, its officers and its licence or supervision. A supervised trustee lowers the risk but does not replace information on settlor and beneficiaries.
How often must the documents be updated?
With every change of the deed or the roles and as part of the periodic review. Beneficiaries coming of age and new trustees are typical occasions.
Sources
- HCCH – Hague Convention on the Law Applicable to Trusts
- Swiss Bankers Association – Agreement on the Swiss banks' code of conduct with regard to due diligence (CDB 20)
- German Money Laundering Act (GwG), section 3 – Beneficial owner
- Swiss Anti-Money Laundering Act (AMLA/GwG, SR 955.0) – Fedlex
This page provides orientation and does not replace legal or tax advice. The cited legal sources in their applicable version are authoritative.
Read more
More on Compliance in practice
FLIORE in your family office
See structures, compliance and consolidated wealth with your own questions – in a personal demo.