Events 
Resources 
News News
Read our latest news, stories and articles
New Supplemental Swiss Rules for Trust, Estate and Foundation Disputes (TEF Rules) to Enter into Force on 1 July 2025
Arbitration for private-wealth disputes is becoming increasingly popular, not least because the Swiss Civil Procedure Code (“CPC”) and Chapter 12 of the Swiss Private International Law Act (“PILA”), which govern domestic and international arbitration in Switzerland respectively, expressly provide that their provisions apply mutatis mutandis to arbitration clauses contained in unilateral legal instruments. These provisions confirm that arbitration clauses contained in unilateral instruments regulating trusts, estate, and foundation matters, i.e. trust deeds, foundation statutes, or wills, are also valid as a matter of Swiss law.
The Swiss Rules of International Arbitration are suitable to resolve any type of dispute, including disputes arising in relation to trusts, estate matters, and foundations. But such disputes raise specific questions that distinguish them from other commercial disputes.
To account for the specificities of such disputes, the Swiss Arbitration Centre has unveiled new, state-of-the-art Supplemental Swiss Rules for Trust, Estate and Foundation Disputes (“TEF Rules”), which are scheduled to enter into force on 1 July 2025.
The TEF Rules comprise a succinct set of provisions that are designed to tailor arbitration proceedings under the Swiss Rules specifically to private-wealth disputes related to trusts, estates, or foundations. Notably, they address the notification of, information rights, and representation of persons affected by the dispute in question. Furthermore, they provide for specific rules regarding the constitution of the arbitral tribunal and the applicable substantive law in estate matters.
The TEF Rules will be available in English, German, French, and Italian. An Explanatory Note on the use of the TEF Rules will also be made available in all four languages.
Werner Jahnel, Partner at LALIVE in Zurich, member of the working group notes: “Practice shows that large international inheritance disputes take on a complexity that very often cannot efficiently be handled before national courts, in particular if trusts or other structures are involved. Moreover, heirs are frequently faced with multiple and lengthy proceedings in several jurisdictions. Arbitration proceedings are a valuable alternative for these kinds of disputes. The TEF Rules administered by a first-tier arbitration institution will provide the ideal framework for conducting disputes related to trust and estates and will strengthen confidence in arbitration in those areas.”
Stefanie Pfisterer, Partner at Homburger in Zurich, Vice President of the Arbitration Court of the Swiss Arbitration Centre and member of the working group on the TEF Rules comments that “the Supplemental Swiss Rules for Trust, Estate and Foundation Disputes unlock the power of arbitration for private-wealth disputes – they offer a tailored and efficient framework for resolving private-wealth disputes through arbitration, ensuring in particular confidentiality and expertise.”
Christopher Boog, Partner with Schellenberg Wittmer in Zurich and Singapore and President of the Arbitration Court of the Swiss Arbitration Centre comments that “the TEF Rules have been drafted by a select group of private-wealth disputes specialists and have been diligently vetted and commented on by an array of trust and estate lawyers around the world in the process. As such, we trust that these rules will be of use to users of arbitration who wish to take advantage of the benefits of arbitration in general and the Swiss Arbitration Centre in particular to resolve their TEF Disputes in an efficient and effective manner that serves and protects the rights of all stakeholders involved.”
Johannes Gasser, Senior Partner of Gasser Partner, who commented on the draft TEF Rules from a Liechtenstein law perspective, in particular regarding foundations, adds: “The TEF Rules will be an invaluable tool for arbitrators and counsels representing parties in arbitration around the world. In Liechtenstein we have seen a steady growth of arbitration cases involving disputes of dynastic families who have structured their wealth with Liechtenstein and foreign foundations and trusts. The TEF Rules marry the needs for confidentiality of such families and potential parties to arbitration with a clear and efficient methodology of dispute management. Trust and foundation lawyers around the world, and in Liechtenstein, will greatly benefit from the new rules and I advise they should consider inserting a respective TEF Rules compliant arbitration clause in trust settlements and foundation statutes they will be drafting.”
David Brownbill KC, XXIV Old Buildings in London and Geneva, who contributed from a common law perspective, particularly regarding trusts, states “Swiss arbitration law has now taken the great step of providing for arbitration clauses in unilateral instruments, including trusts, estates, foundations, and companies, enabling the Swiss Rules of International Arbitration to be engaged in these unilateral arrangements. As the demands for confidentiality and expert adjudication grow, the ability to arbitrate trust and estate disputes becomes ever more important. The Swiss Rules have now been greatly enhanced by the promulgation of the TEF Rules, which have been designed to offer practical solutions to the special challenges and particular needs presented in trust and estate disputes.”
About the Swiss Arbitration Centre:
The Swiss Arbitration Centre is an independent institution that provides high-quality arbitration and mediation services worldwide.
Every year, the Centre helps hundreds of companies and individuals resolve their disputes in a fair, private, and effective manner. The Centre’s services are available for any dispute, regardless of its nature, the nationality of the parties, the place of arbitration, and the applicable law. The Centre can settle disputes promptly and efficiently, which allows the parties to move on quickly and get back to business.
The Centre is well known for its Swiss Rules, the golden standard for arbitration and mediation. As a platform of expertise, the Centre is supported by a global network of arbitration and ADR users, legal professionals, the Swiss Arbitration Association (ASA), and the chambers of commerce of Basel, Bern, Central Switzerland, Geneva, Neuchâtel, Ticino, and Zurich.