12 June 2025

In Arbitration we Trust: New Suplemental Swiss Rules for Trust, Estate and Foundation Disputes (TEF Rules)

  • Articles
  • Legal
  • Inheritance / Succession
  • Litigation / Arbitration

On 1 July 2025, the new TEF Rules of the Swiss Arbitration Centre will enter into force – offering a practical framework for arbitration in trust, estate, and foundation disputes.»

  • Dr. Jonatan Baier

    Legal Counsel

  • Alexandra Geiger

    Legal Counsel

  • Nadira Zellweger-Ferhat

    Senior Legal Associate

Disputes within global families who own foundation and trust structures worldwide regularly present particular challenges. Since 2021, arbitration clauses may therefore be included in unilateral legal instruments such as trust and foundation deeds, last wills and testaments. These clauses are generally valid provided the seat of arbitration is in Switzerland.

Arbitration proceedings in the areas of trust, estate and foundation matters offer the following key advantages:

  1. The parties may determine the composition of the arbitral tribunal and ensure that knowledgeable experts in the private wealth field are appointed as arbitrators.
  2. Unlike state court proceedings, arbitration remains confidential and private, which is of high importance in family matters.
  3. The procedural rules are flexible and may be individually tailored to the parties’ needs, including the choice of procedural language.
  4. All involved persons may be included in the proceedings, which facilitates recognition and enforcement of arbitral awards under the New York Convention.
  5. Arbitration proceedings are generally concluded more quickly than state court proceedings.
  6. Grounds for challenging arbitral awards are strongly limited.

Hence, a testator, settlor, or foundation founder has the possibility to provide that disputes amongst family members, with a foundation board, trustees, protectors, or beneficiaries, are decided by experts in a swift and confidential arbitration proceeding. This is particularly beneficial when family assets are situated in various countries or family members reside in different jurisdictions, as arbitration can prevent multiple (parallel) probate proceedings in different countries, possibly even without the involvement of all affected parties.

The new TEF Rules, supplement to the Swiss Rules of International Arbitration, provide for a set of clear guidelines on issues such as notification, rights to information and representation of affected parties, composition of the arbitral tribunal, and the applicable substantive law in estate matters. Additionally, model arbitration clauses are provided for use in last wills and testaments, inheritance contracts, trust deeds, and foundation statutes.

The TEF Rules, together with an Explanatory Note, will be available in English, German, French, and Italian. To date they can be downloaded in English via the following link: New Supplemental Swiss Rules for Trust, Estate and Foundation Disputes (TEF Rules).

This arbitration tailored to the needs of confidentiality, privacy and discretion of families, trustees, and beneficiaries is expected to contribute to increased use of arbitration in trust, estate, and foundation matters.

The MME Private Client Team assists you in the fields of (international) estate planning, foundations, and trusts. Together with the MME Arbitration Team, we are available as experienced counsels in arbitration proceedings. We offer customized solutions and represent your interests competently and efficiently - for bespoke (international) estate planning and successful dispute resolution.
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