Fidelis Trust and Corporate Services Ltd

Trusts

ASPECTS AND BENEFITS OF A TRUST

A trust is the most popular and successful method of sheltering and protecting assets and assuring succession to chosen beneficiaries.

A trust is created by way of an agreement whereby a person (the Settlor) transfers property to another person (the Trustee) who, in accordance with instructions in a Trust Deed, is obligated to hold trust property for the benefit of one or more persons (the Beneficiaries).

It is possible to have a further person (the Protector) to oversee the actions of the Trustee. The settlor can be appointed as the Protector.

In many instances the trust is discretionary and it is common for the Settlor to provide the Trustee with a letter of wishes nominating his beneficiaries.
The Trustee will always follow the letter of wishes if it is in the best interests of the beneficiaries.
During his or her lifetime, the Settlor may amend the letter of wishes at any time.

A professional trust management company in a suitable jurisdiction is appointed as the Trustee.
The trust assets do not form part of the Trustee’s own estate and, save for its entitlement to fees, it may not acquire any benefit from the assets.
A trust may be terminated after a certain period of time or once the assets have been distributed to the Beneficiaries.

Continuity
The assets of the trust do not form part of the Settlor’s estate and, on the death of the Settlor, long, complicated and costly probate and winding up procedures are avoided.

Anonymity and Confidentiality
The identity of the Settlor and ultimate Beneficiaries are kept confidential.
The Settlor and Beneficiaries need not be named in any public document.
Anonymity is further maintained through the strict secrecy laws of our chosen jurisdictions.

Tax Planning and Estate Duty
A trust may eliminate, reduce or postpone taxation of assets placed in the trust or income derived therefrom or capital gains tax on the sale of assets depending on the client’s particular circumstances.
Prior to immigration to certain countries, a trust can protect assets from falling into an unfavourable tax environment.

Asset Protection
Trusts can be useful in protecting the Settlor and Beneficiaries from unfavourable exchange control laws and may also provide protection from creditors, forced heirships and unfavourable personal and business relationships.

TRUSTS IN MAURITIUS

The legal framework for Trusts is contained in the Trusts Act 2001. Various types of Trusts may be set up by residents and non-residents in Mauritius such as charitable, discretionary, purpose and trading trusts. Flexibility is provided under the Trusts Act in determining the applicable governing law.


Key features

  1.  Possibility to accumulate income for any period within the duration of the Trust.
  2. A Trust may carry on a Qualified Global Business once a Category 1 Global Business Licence has been obtained.
  3. A Trust may not apply for a Category 2 Global Business Licence.
  4. A foreign Trust may be registered in Mauritius provided the terms of the Trust are in compliance with Mauritian law.
  5. The forced heirship rules do not apply to Trusts set up by non-Mauritian nationals.


Innovative features

  1. The Trust may provide for the appointment of any person as a managing trustee who is entrusted with the management without being vested with the Trust property, which is vested in a custodian trustee.
  2. The custodian trustee may be a firm, a body corporate which shall hold the trust property and invest its funds and dispose of its assets only under the direction of the managing trustee.
  3. Letters of wishes may originate from the settlor or any beneficiary under the Trust.
  4. The Trust set up by a citizen or a resident in Mauritius need not be witnessed by a notarial deed.
  5. No express provision for the registration of a Trust.

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