Trusts

Malta’s trusts law allows for the beneficial, yet secure, protection of a person’s wealth and property. Trusts are very flexible and efficient vehicles for asset protection and asset management on a global level. 

Setting up of Trusts in Malta

The main legislative framework which regulates the setting up of Malta Trusts is the Malta Trusts and Trustees Act. To ensure the highest level of security, the Malta Trusts and Trustees Act provides for strict regulations relating to the authorisation and supervision of trustees. The Act also incorporates the Hague Convention on the Law Applicable to Trusts and on their Recognition which Malta has ratified.

Use of Malta Trusts

Chetcuti Cauchi offers comprehensive advice in the use of trusts. Malta Trust Law recognises three main types of trusts. These are express trusts, implied or resulting trusts, and constructive trusts. In an express trust, the settlor clearly delineates in the trust deed who of the beneficiaries should benefit and to what extent.  An express trust is typically set up in writing.  Implied or resulting trusts are trusts arising from the intention of the settlor, which intention is presumed from his words or actions. Constructive trusts arise by operation of law and arise as a means to avoid a person’s unjust enrichment.

Our Trust Company

Chetcuti Cauchi’s trust companyis an authorised trustee approved by the Malta Financial Services Authority (MFSA). The directors and officials of the company have been vetted by the MFSA and confirmed as fit and proper to carry out such services.  The MFSA is responsible for the authorisation, regulation and supervision of trustees. The MFSA is an autonomous public authority constituted and regulated by the Malta Financial Services Authority Act and requires the highest standards of probity and honesty.

Our Trusts Law Practice 

As trustees, our priority is to ensure utmost care in the administration of the property put in trust for the ultimate benefit of the trust’s beneficiaries, typically, future generations. Our distinguished management team includes a number of specialised lawyers, accountants, and trust administrators, bringing together the strategic mix of skills and experience necessary for the running of a high-calibre trust. This is an asset that puts Chetcuti Cauchi at the forefront in the field.

While carrying out the necessary due diligence procedures and maintaining legal compliance throughout the life of the trust, we respect the client’s wishes in settling the trust property. We have years of experience in drafting trust instruments that best reflect a client’s needs and endeavour to make all the implications of settling a property in trust transparent to our clients. This includes any tax or accounting requirements that may arise and in which our qualified accountants and tax advisors have long-standing experience.

Malta Trusts Lawyers

Malta is known to be a stable and adaptable financial centre with significant expertise in this sector. Our firm offers trust and trustee services through our licensed independent trust and corporate services firm. We have been involved with mainstream assets such as family business, financial portfolios and real estate investments as well as new age holdings such as virtual and digital assets. We are one of the leading players in the field of Malta trusts and we offer professional trustee services to local and international persons, whether legal or natural. We would be happy to discuss trusts as a solution to your requirements.  

Our Malta trust lawyers play a crucial role in helping our clients establish and manage trusts effectively, ensuring asset protection, tax efficiency, and smooth succession planning. Our team of family trust lawyers has extensive experience setting up family trusts in Malta and, through its multidisciplinary setup, provides the full spectrum of legal, tax, compliance and family office advisory services that are critical to the effective operation of family trusts. We typically assist clients with the following:  

• Setting up trusts: Drafting trust deeds, appointing trustees, and ensuring compliance with Maltese trust law.  
• Asset protection: Advising clients on how to protect their assets from potential creditors, tax liabilities, and other risks.  
• Estate planning: Helping clients structure their assets to minimize inheritance tax and ensure a smooth transfer of wealth to beneficiaries.  
• Tax planning: Identifying and implementing tax-efficient strategies for trust assets, including capital gains tax, income tax, and inheritance tax.
• Administration and management: Providing ongoing administrative and estate management services for trusts, including record-keeping, financial reporting, and compliance with regulatory requirements.  
• Litigation and dispute resolution: Representing clients in legal proceedings related to trusts, such as disputes between beneficiaries or challenges to the validity of a trust.  

Our trust lawyers actively participate in Malta trust law activities and in the public-private efforts to keep developing Malta as a foremost trust jurisdiction. Our Senior partners Dr Priscilla Mifsud-Parker and Dr Jean-Philippe Chetcuti have served as chairpersons to the Malta branch of STEP, the Society of Trust & Estate Practitioners.