Malta’s trusts law allows for the beneficial, yet secure, protection of a person’s wealth and property. Trusts have become very flexible and efficient vehicles for asset protection and asset management in Malta.
Trusts Law in Malta
- Setting up of Malta Trusts
The main legislative framework which regulates the setting up of Malta Trusts is the Malta Trusts and Trustees Act. To ensure the highest level of security, the Malta Trusts and Trustees Act provides for strict regulations relating to the authorisation and supervision of trustees. The Act also incorporates the Hague Convention on the Law Applicable to Trusts and on their Recognition which Malta has ratified.
- Use of Malta Trusts in compliance with Malta trusts law
Chetcuti Cauchi offers comprehensive advice in the use of trusts. Malta Trust Law recognises three main types of trusts. These are express trusts, implied or resulting trusts, and constructive trusts. In an express trust, the settlor clearly delineates in the trust deed who of the beneficiaries should benefit and to what extent. An express trust is typically set up in writing. Implied or resulting trusts are trusts arising from the intention of the settlor, which intention is presumed from his words or actions. Constructive trusts arise by operation of law and arise as a means to avoid a person’s unjust enrichment.
Our Trust Company
Chetcuti Cauchi’s trust company, Claris Trustees, is an authorised trustee approved by the Malta Financial Services Authority (MFSA). The directors and officials of the company have been vetted by the MFSA and confirmed as fit and proper to carry out such services. The MFSA is responsible for the authorisation, regulation and supervision of trustees. The MFSA is an autonomous public authority constituted and regulated by the Malta Financial Services Authority Act and requires the highest standards of probity and honesty.
Our Trusts Law Practice
As trustees, our priority is to ensure utmost care in the administration of the property put in trust for the ultimate benefit of the trust’s beneficiaries, typically, future generations. Our distinguished management team includes a number of specialised lawyers, accountants, financial advisors and trust administrators, bringing together the strategic mix of skills and experience necessary for the running of a high-calibre trust. This is an asset that puts Chetcuti Cauchi at the forefront in the field.
While carrying out the necessary due diligence procedures and maintaining legal compliance throughout the life of the trust, we respect the client’s wishes in settling the trust property. We have years of experience in drafting trust instruments that best reflect a client’s needs and endeavour to make all the implications of settling a property in trust transparent to our clients. This includes any tax or accounting requirements that may arise and in which our qualified accountants and tax advisors have long-standing experience.
Malta Trusts Lawyers
Our Malta trusts law team is heavily involved in the executive council of STEP Malta branch with two of the firm’s partners acting as branch secretary and member of the Technical Committee. Our team is also involved in the IFSP Council, Malta Institute of Taxation, Malta Institute of Accountants, FinanceMalta and the Chamber of Advocates. In the international tax and corporate services sector, we are members of the International Tax Planning Association, the International Fiscal Association and the European Family Business Network.
We are proud to have extensive experience in the trusts law and estates management field, particularly in tax planning and in the setting up and management of trusts as well as the recognition in Malta of foreign trusts under the Hague Convention. We also act as nominee shareholder to hold shares in companies incorporated by us if we are satisfied that the underlying reasons are legitimate, and we also provide escrow agency services in local or international private or commercial transactions