A trust is a fiduciary relationship in which one party, known as a Settlor, gives another party known as the Trustee, the right to hold title to property or assets for the benefit of the third party, the Beneficiaries. Trusts in Mauritius are governed by the Mauritius Trusts Act 2001, which allows for life interest / contingent interest trust, protective or discretionary trust, employee benefit trust, charitable trust, purpose trust or foreign trust.
What are the advantages of a Trust ?
The main advantages of a Trust are:
- Gives the Settlor the requisite protection and comfort for long-term wealth management under the Trust. Family assets are preserved over generations with most tax efficiency, succession laws, forced heirship rules, probate and other hurdles are avoided. Once a Trust is set up it can own companies and manage any family business or wealth ;
- It is not required to be registered anywhere thus providing confidentiality. A Trustee may register the Trust with the Registrar General to receive a “date certaine” which is registering the date of creation of the Trust ;
- Proper law may be chosen by the Settlor ;
- Possibility for the Settlor to leave on or before his death letters of wishes ;
- Anti-forced heirship rules ;
- Recognition of Purpose Trusts ;
- Possibility to accumulate income for any period during the duration of the trust ;
- No disclosure of the trustees’ deliberations, the name of the Settlors and the Beneficiaries unless the latter is a Mauritian resident or a body corporate resident in Mauritius ;
- Trusts not being void or voidable due to the insolvency of the Settlor or proceedings against him or latter being declared bankrupt. However, such trust may be void if the creditors prove beyond reasonable doubt that the intention of the Settlor at the time of the creation of the trust was to defraud them ;
- Trust can hold a company with a Global Business Licence and benefit from double taxation treaties.
For more information and advice on its implementation please contact us.