Features and benefits of the Mauritius Trust

Trusts are a popular wealth planning tool used by individuals, families and business owners to manage and protect their assets. In Mauritius, Trusts are governed by the Mauritius Trusts Act 2001, which allows for the creation of various types of Trusts, including discretionary Trusts, employee benefit Trusts, charitable Trusts and purpose Trusts.

One of the main advantages of a Trust is the separation of legal ownership and beneficial ownership. This distinction allows for proper control and management of Trust property, while also ensuring confidentiality, asset protection, and tax planning benefits. A Trust is created when a Settlor transfers the legal ownership of assets to Trustees to hold for the benefit of Beneficiaries or a specific purpose.

Mauritius is a popular destination for Trust creation due to its favorable legal and regulatory framework. A Mauritius Trust can be created by a resident or non-resident of Mauritius, and it is not mandatory to register the Trust in Mauritius. The Trusts Act allows for the appointment of a Protector, who owes fiduciary duty to the Beneficiaries. The Protector can remove a Trustee and appoint a new or additional Trustees if necessary.

The Mauritius Trust offers several features and benefits to investors. A maximum of four Trustees can be appointed, provided that one of the Trustees is a qualified Trustee licensed by the Financial Services Commission (FSC). The Settlor can also be one of the beneficiaries of the Trust, and trusts can migrate to and from Mauritius.

A Mauritius Trust can hold most types of assets, including bankable assets, real estate, shares and stocks in both listed and private companies, and insurance policies.

Overall, the Mauritius Trust is an efficient wealth planning instrument, particularly for entrepreneurs and business owners on the African continent. If you want to know more about the Mauritius Trust and how it can benefit you, do not hesitate to get in touch with us on bd@juristax.com