Mistake in a civil law context—some reflections on private foundations and ‘recognized’ trusts

This article reviews two examples of a civil law system's reaction to mistake in respect of estate planning and wealth management arrangements. First, it discusses the Austrian and Liechtenstein courts' attitude to mistake in relation to private foundations. Secondly, it considers various instances of mistake in connection with 'domestic trusts' recognized in Italy under the Hague Trusts Convention. This anecdotal evidence appears to suggest that trusts, both in their natural equitable environment and in the jurisdictions where they are 'recognized' under private international law provisions, exhibit a higher degree of flexibility than private foundations in relation to the courts' ability or willingness to remedy mistakes.