Why do people set up trust structures?
Trusts can help clients in several ways, depending on their personal circumstances these include; protecting assets now and into the future, transitioning assets (including a business) to the next generation in accordance with the clients wishes, simplifying the administration of assets and investments worldwide and supporting compliant international tax planning.
Selecting the right jurisdiction to fit your needs is an important consideration when setting up a trust.
Maltese trusts are regulated by the Trusts and Trustees Act, Chapter 331 of the Laws of Malta, 2004 which is modelled on Jersey Trust Law of 1984. The application of the Trust and Trustees Act is available to anyone and is applicable to all property of any description. In effect the trust is a legal relationship, in which the settlor formally transfers the asset(s) to the trustee, to hold in benefit of others. The trusts in Malta exist for 125 years from creation date, unless terminated before.
A trust set up in Malta can provide various advantages, including:
- efficient distribution of assets in accordance with the settlors wishes
- flexibility of trust deed drafting
- the settlor can impose certain conditions on the distribution of assets following death
- consolidation of estate in a trust administered by a professional trustee
- appointment of a protector
- potential protection of trust assets from future creditor claims
- naming a successor trustee following the settlors' death
- tax transparency
In addition, Malta is a Civil Law jurisdiction, which is considered 'on-shore' and is part of the European Union, making it unique among its kind.
TMF Fiduciary Services (Malta) Ltd is now fully licenced by the Malta Financial Services Authority to act as trustee. With more than a decade of experience in financial services administration in Malta, our specialist team includes lawyers, certified public accountants and members of the local fiduciary and tax bodies. The team is experienced in full range of management services to help maximise efficiency and productivity. We take pride in assisting our clients' growth and protecting their businesses and investments by offering tailor-made solutions to meet their needs. Clients benefit from TMF Group's global network and strong local market knowledge.
To find out how we can help you in Malta or in other jurisdictions around the world, speak to our experts: