Malta introduced the concept of Trusts into its legal system in through the enactment of the Offshore Trusts Act. A Trust exists where a person holds, as the legal owner or has vested in him property under an obligation to deal with that property for the benefit of other persons.
Therefore, by definition, trusts create fiduciary obligations upon the trustee in favour of the beneficiaries of the trusts. The settlor of trusts is the individual or juridical person that settles the assets or property in trust. Whereas the trustee is typically authorized by the Malta Financial Services Authority to provide trust services. Since the introduction of the Act within the Maltese legal systems, Trusts have provided its users with effective:.
Trust property constitutes a separate fund owned by the trustee , distinct and separate from the personal property of the trustee and from other property held by the trustee under any other trusts.
Therefore, upon settlement of the trust property by the settlor s , assets are transferred to the trustee who holds legal ownership. Furthermore, the holding of property under trusts will have the following legal effects:. A Trust offers unique opportunities to establish a structure tailored to the needs of its settlors.
Common functional uses of Trusts include estate planning , tax planning and charities. Unlike Foundations, which are established via a Public Deed or Will published in the records of a notary public, Trusts are established by means of a private writing.
