The setting up of trusts in Malta is regulated by the Trusts and Trustees Act, as amended by Act XI of 2014, which provides for the creation of trusts and the authorisation and supervision of trustees. The Act also incorporates the Hague Convention on the Law Applicable to Trusts and their Recognition, 1994. The Authority entrusted with their oversight is the Malta Financial Services Authority.
A trust is a legal relationship which may be created either during the life of a person or on the death of a person, the settlor, when assets have been placed under the control of another, the trustee for the benefit of a beneficiary or beneficiaries. The trust fund constitutes a separate patrimony to that of the trustee even though in the name of the trustee and the trustee has the power and the duty in respect of which it is accountable to manage, employ or dispose of those assets, in accordance with the terms of the trust instrument and law.
The establishment of a trust is the result of a specific intention that constitutes a relationship of a fiduciary nature, involving not only personal duties but also duties in relation to property coupled with equitable duties imposed on the trustee to deal with the property for the benefit of another.
A trustee may be a professional trustee, duly authorised by the Malta Financial Services Authority or otherwise a ‘private’ trustee who may act as trustee subject to certain qualifications. A trustee who is duly authorised by the Malta Financial Services Authority may also act as a fiduciary to hold shares in a company.
CT Legal has particular expertise in the area of trusts offering assistance not only to its own clients but to other firms and practices in Malta. We assists our clients, both individual and corporate by explaining the salient features of the trust, how the trust would operate and the legal ramifications to both settlor, beneficiaries and interested parties. With several years of experience in this field and having TEP qualified partners, we are very well positioned to consult on such matters.
All advice is given to suit the specific needs of our clients.
