TRUST

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A Trust is a highly effective way of organising personal and business affairs. For private clients, the benefits of establishing a trust mainly relate to effective estate and inheritance planning, asset preservation, wealth management, investment planning and avoidance of forced heirship rules.

Trusts are, in principle, a very simple concept. A trust is a private legal arrangement where the ownership of assets (which might include property, shares or cash) is transferred to second party (the Trustee) to manage for the benefit of a third party.

Types of Trusts

Although the most common form of Trust set up in Mauritius is the Discretionary Trust, the legal framework for Trusts and Trust Services contained in the Mauritius Trust Act 2001 allows for various other types of Trusts to be set up. These include Charitable Trusts, Purpose Trusts and Trading Trusts.

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Key Features of Mauritius Trusts

  • A Mauritian Trust can be established as a tax resident or tax exempt
  • Tax resident Trusts can access Mauritian Double Taxation Agreements (DTA’s)
  • There may be up to four trustees, at least one of which must be a qualified trustee residing in Mauritius
  • A Trust cannot be voidable in the event of bankruptcy or action by creditors (This is subject to certain safeguards)
  • The Courts cannot enforce a foreign judgment against a Mauritian Trust in respect of forced heir ship or marital disputes
  • Establishment and administration of Managed Trust Operations