TRUST
A Trust in Mauritius is governed by The Trusts Act 2001.
A Trust is a legal arrangement where a Settlor transfers asset to a Trustee who will administer and manage the Trust for the benefit of beneficiaries. The Trustee will manage the Trust according to the wishes of the settlor. The wishes of the settlor are set out in writing in a Trust Deed or a Declaration of Trust.
A trust can be described as a fiduciary relationship in which one party, known as a settlor(s), gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary(ies).
A trust is one of the most commonly used vehicles for the holding of assets either for the benefit of beneficiaries or for charitable purposes.
Features of a trust
A Trust is a legal arrangement where a Settlor transfers asset to a Trustee who will administer and manage the Trust for the benefit of beneficiaries. The Trustee will manage the Trust according to the wishes of the settlor. The wishes of the settlor are set out in writing in a Trust Deed or a Declaration of Trust.
A trust can be described as a fiduciary relationship in which one party, known as a settlor(s), gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary(ies).
A trust is one of the most commonly used vehicles for the holding of assets either for the benefit of beneficiaries or for charitable purposes.
Features of a trust
- Can be formed by a resident or a non-resident of Mauritius.
- The forced heirship rules of other states will not be enforced in Mauritius.
- The trust is managed by trustee(s) in Mauritius and can have a custodian trustee in another jurisdiction.
- Very flexible vehicle and can be formed as a life interest trust, a discretionary trust, a purpose trust, a charitable trust, a protective trust or a protection trust.
- The trust can have a protector and a purpose trust must have an Enforcer.
- A resident trust has access to the Double Taxation Agreements in force in Mauritius.
Confidentiality
There is no register of trusts in Mauritius nor is there any need for any disclosure of beneficial owner to any authority. A trust is absolutely confidential in Mauritius. There is no need to disclose to any authority that a trust has been formed. A trustee has a duty to keep the terms of the trust confidential unless required by law enforcement agencies.
Asset Protection Features
The legislation includes the following features:
There is no register of trusts in Mauritius nor is there any need for any disclosure of beneficial owner to any authority. A trust is absolutely confidential in Mauritius. There is no need to disclose to any authority that a trust has been formed. A trustee has a duty to keep the terms of the trust confidential unless required by law enforcement agencies.
Asset Protection Features
The legislation includes the following features:
- In the absence of intent to defraud, a trust shall not be void or voidable as a consequence of a subsequent bankruptcy of the settlor nor in consequence of any action taken against the settlor by his creditor.
- The court may declare a trust void or to be void if the creditor has been proven beyond doubt that the trust was made with the intention to defraud the creditors of the settlor.
- No action may be brought upon if the transfer of assets into the trust is 2 or more years old.
Migration of trust
A trust established outside Mauritius can be transferred to Mauritius for tax purposes. This can be done by ensuring that the majority of trustees are resident in Mauritius and the trust is administered in Mauritius. Depending on the terms of the original trust, the proper law of the trust can be amended to that of Mauritius by a simple declaration by the trustees in the deed of retirement and appointment.
Trustee
At least one trustee of a Mauritius trust must be a qualified trustee. A qualified trustee is one licenced to carry out trust services by the Financial Services Commission. The number of trustees must not exceed four.
Settlor
Any person who has the legal capacity to contract may create a trust. A settlor may be one of the trustees, beneficiary, protector or enforcer of the trust but may not be the sole beneficiary.
Beneficiaries
The beneficiaries of the trust must be clearly identified or identifiable by name or ascertainable by reference to a class of persons or by relationship to another person. The terms of the trust may provide for the addition of other beneficiaries. A list of beneficiaries or potential beneficiaries must be set out in the trust deed.
Our services to Trusts:
A trust established outside Mauritius can be transferred to Mauritius for tax purposes. This can be done by ensuring that the majority of trustees are resident in Mauritius and the trust is administered in Mauritius. Depending on the terms of the original trust, the proper law of the trust can be amended to that of Mauritius by a simple declaration by the trustees in the deed of retirement and appointment.
Trustee
At least one trustee of a Mauritius trust must be a qualified trustee. A qualified trustee is one licenced to carry out trust services by the Financial Services Commission. The number of trustees must not exceed four.
Settlor
Any person who has the legal capacity to contract may create a trust. A settlor may be one of the trustees, beneficiary, protector or enforcer of the trust but may not be the sole beneficiary.
Beneficiaries
The beneficiaries of the trust must be clearly identified or identifiable by name or ascertainable by reference to a class of persons or by relationship to another person. The terms of the trust may provide for the addition of other beneficiaries. A list of beneficiaries or potential beneficiaries must be set out in the trust deed.
Our services to Trusts:
- Application for Trust
- Execution of Trust Deed (This can be by way of either a Settlement or Declaration of Trust)
- We are empowered by the FSC to act as Qualified Trustee
- Trust migration services
- Tailor-made solutions to suit the requirements of our clients including tax minimisation, reduction of global operating cost, and assets protection.