23 Oct How To Set Up A Trust In Mauritius
Whether you are planning on moving to Mauritius or are merely looking for a solid investment option to secure your financial and other assets, creating a trust in Mauritius is a highly rewarding and secure decision. Trusts are set up for several reasons, including confidential asset protection, discrete family asset development, securing your personal and business assets as separate entities, as well as part of a pre-emigration step if you are looking at moving to Mauritius.
There are four main types of trust available:
- Purpose Trusts: These trusts are not focused on beneficiaries, but particular, set purposes.
- Charitable: A trust entirely dedicated to aiding a charitable organisation.
- Corporate: This trust is dedicated to corporate advancement and includes pension and employee benefit trusts.
- Private: Trusts focused on life interest, fixed interest, discretionary and accumulation of assets
The most commonly selected is the discretionary trust, which has a broad range of purposes, including securing assets by selected trustees, to be used as determined at a later point in time, or creating business organisations through the trust.
What Mauritius Trusts Offer:
- Asset Protection
- Holding of Investments and Property
- Investment Funds
- Charitable and Philanthropic Purposes – these are exempt from tax
- Estate and Succession Planning
- Protection from forced heirship rules
- Confidentiality of trustee’ deliberations
How Do I Create A Trust?
Trusts are created by creating a written document which states the object, subject and intention of the trust, as well as the duties and powers of the trustees. Trusts are governed by the Trusts Act, 2001, and will require the final approval of a representative authority to be validated.
Trusts can be created in two different formats:
Settlement: this type of trust is signed by the investor and the trustee, and supplies very clear instructions about the agreed about obligations of each party, as well as details specifying the intention of the trust.
Declaration of Trust: This document is only signed by and used by the trustee and provides records of evidence to verify that the trustee owns particular assets or property, and the terms of the ownership as per conditions stated in the trust.
A trust in Mauritius is clearly something worth looking into if you’re looking to move to Mauritius or are just interested in an alternative investment option for your and your family’s future. Want more info? Get in touch.
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