The Swiss Arbitration Centre has announced the launch of new Supplemental Swiss Rules for Trust, Estate and Foundation Disputes (TEF Rules), set to take effect from 1 July 2025. This development reflects Switzerland’s ongoing evolution as a leading jurisdiction for confidential, efficient and legally sophisticated dispute resolution in private wealth matters.
The TEF Rules address the growing need for clear, predictable mechanisms to resolve disputes arising from trusts, estates and foundations, structures that often involve multiple jurisdictions, overlapping legal regimes and sensitive family dynamics. Building on the 2021 amendments to the Swiss Civil Procedure Code and the Swiss Private International Law Act, these rules confirm the enforceability of arbitration clauses in unilateral instruments such as wills, trust deeds and foundation statutes, provided the arbitration seat is in Switzerland.
Designed to supplement the Swiss Rules of International Arbitration, the TEF Rules apply in several key scenarios: where arbitration clauses reference the Swiss Rules, where there is explicit agreement to use the TEF Rules, or where earlier rules were incorporated. They introduce mechanisms for identifying and notifying all "Entitled Persons", including those who may be unborn or incapacitated, ensuring that each party’s interests are adequately represented. This is essential for enforceability both in Switzerland and internationally.
The rules cover critical elements such as tribunal constitution, applicable substantive law in estate matters, and the appointment of arbitrators. They are accompanied by model arbitration clauses for use in estate planning documents, simplifying the drafting process and reducing ambiguity.
For wealthy families managing multi-jurisdictional estates, the TEF Rules provide clarity and help avoid parallel proceedings, reduce jurisdictional uncertainty and ensure privacy. This is particularly relevant for Alpadis’ clients, many of whom have cross-border interests and require discretion and precision in dispute resolution mechanisms.
These developments are also highly relevant in the context of family governance. As outlined in our advisory services, establishing transparent dispute resolution pathways is critical to maintaining cohesion and protecting long-term family wealth.
These developments are more than procedural; they reflect Switzerland’s role in setting global standards for fiduciary and private wealth governance. The introduction of model clauses, coupled with Switzerland’s strong legal infrastructure, will likely influence how other jurisdictions approach arbitration in private wealth contexts.
As an independent provider of fiduciary and family office services with deep expertise in private wealth structures, Alpadis welcomes the introduction of the TEF Rules. Our teams across Switzerland, Singapore, Hong Kong, and other key markets are well-positioned to advise clients on integrating these provisions into their trust and estate planning documents, ensuring alignment with local laws and family objectives.
We view this as a positive evolution in private wealth governance and stand ready to support our clients with the incorporation and practical implementation of arbitration frameworks into their structures.
For more information on how these developments may affect your family office or wealth planning strategy, please contact your Alpadis advisor.
