The settlement of property on trust divests the settlor of legal title to the settled property in favour of the trustee, who becomes the legal owner of the trust assets, and brings about a trust relationship with respect to the trust assets. The trustee holds the trust assets under an obligation to deal with those assets for the benefit of beneficiaries, whether or not yet ascertained or in existence. A protector may also be appointed.
Malta legislation regulating trusts and trustees is heavily based on UK and Jersey legislation and, in the provision of their services, trustees are regulated by the Malta Financial Services Authority.
A trust may be set up by a private writing (the trust deed) which is not registered in public records.
A trust may be set up to deal with different scenarios and the following are examples of trusts.
Francis J. Vassallo & Associates Ltd provides advisory services in regard to the setting up of a trust relationship and tax implications arising therefrom and also assists in the drafting of the trust deed and related documents.