The set up of a Trust used to be associated with the wealthy. Things are changing fast. The concept of setting up Trusts is becoming more and more popular in Malta.
Trust Registration Malta
Malta has allowed the creation of Trusts since 1984, but a specific Trust and Trustees Act was set up in 2005.
Before even considering setting up a Trust, it is important to grasp the concept of what it actually entails.
Put simply, a trust is a legal arrangement where one person (or more) places assets into an account managed by a third party to benefit someone else. The most common types of trusts are created for inheritance purposes or even a retirement purposes, but they can even extend to charities, commercial organisations or any other type of institution.
The different trusts which can be set up under Maltese law include: Discretionary Trusts; Fixed Interest Trusts; Accumulation and Maintenance Trusts; Protection Trusts; Unit Trusts; Spendthrift Trusts; Charitable Trusts; Implied, Constructive or Resulting Trusts.
While you can try and navigate the complex minefield of Trusts yourself, it is a good idea to engage the services of a specialised Trust firm to assist you to set up a trust that suits you.
An Instrument of Trust and a Letter of Wishes, if the latter is required is set up and due diligence carried out on all the parties to the Trust, including the settlor, protector (if required) and beneficiaries.
You will also be required to disclose full details of the nature of the trust property. The exact process for setting up a trust will depend on the type of trust you choose and the assets and beneficiaries at hand. But in a nutshell, you'll start by establishing the reason for the trust and deciding who your beneficiary or beneficiaries will be. You will also have to decide how you want the assets held in the trust to be handled and distributed. You might, for example, want your beneficiary to receive a set amount of money each year, or a lump sum at a certain point in time.