Chapter 331

In short

This law, called the Trusts and Trustees Act, sets out the rules for trusts and trustees in Malta, including how trusts are created, what they involve, and the duties of trustees.

What it regulates

• The definition and legal effects of a trust.
• The obligations and powers of a trustee.
• The separation of trust property from a trustee's personal assets.
• The types of purposes a trust can serve, including charitable purposes.

Who it concerns

• Anyone acting as a trustee, whether authorized or not.
• Individuals or entities who create trusts (settlors) or benefit from them (beneficiaries).

Key points

• A trust exists when a trustee holds property under an obligation to manage it for the benefit of others (beneficiaries) or for a charitable purpose, and not solely for the trustee's own benefit.
• Trust property is a separate fund, distinct from the trustee's personal property and other trusts they may manage.
• The trustee has full power and duty to administer, use, or dispose of the trust property according to the trust's terms and applicable laws.
• The trust property is protected from the trustee's personal creditors, insolvency, bankruptcy, and does not form part of their matrimonial property or estate upon death.