Revocable Trust

A revocable trust is a trust which can be terminated by at the trustor's discretion.

Depending on the terms and conditions stipulated in the trust deed, the trustor may only be able to terminate a revocable trust and withdraw assets under certain conditions, or they may be allowed to terminate the trust at any time they choose.

In Switzerland a revocable trust is counted as the trustor's property for wealth tax purposes. However, the trustor can reclaim the withholding tax levied on capital gains in trust fund assets if certain conditions are met.

See also: Irrevocable trust

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Daniel Dreier is editor and personal finance expert at moneyland.ch.

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