On this page
Families in Mauritius who want to keep a home or land in the family, while letting a spouse or parent continue to live there, usually meet two tools: the usufruct of the Civil Code and the trust under the Trusts Act 2001. Both separate the enjoyment of an asset from its long-term destination. They do so in very different ways, and the choice between a trust and a usufruct in Mauritius turns on who should control the property, for how long, and under which rules.
This page compares the two for family property. It gives general information only; which tool suits a household depends on its assets, its members and its succession rules, and calls for an adviser's analysis.
Two ways of splitting enjoyment from ownership
How a usufruct works
A usufruct is a right created under the Civil Code. Ownership is divided in two. The usufructuary may use the property and take its fruits, for example by living in a house or collecting rent. The bare owner holds the ownership itself, without present enjoyment, and recovers full ownership when the usufruct ends.
A usufruct commonly arises in a family setting in two ways: by a gift or will that grants the usufruct to one person and the bare ownership to another, or as a result of succession arrangements for a surviving spouse. See surviving spouse inheritance rights for how the law treats the spouse's position.
The usufructuary has rights and duties set by the Civil Code: to preserve the substance of the property, to bear ordinary upkeep, and to return it at the end. A usufruct is usually tied to the life of the usufructuary, so it tends to end at death, at which point the bare owner holds the full title.
How a trust works
A trust works differently. The settlor transfers assets to one or more trustees, who hold them for beneficiaries under a trust deed. Legal title sits with the trustee, not with the family members who benefit. The trustee must administer the assets in line with the deed and the Trusts Act 2001. What a trust is is explained in a separate guide.
Under article 2 of the Trusts Act 2001, a qualified trustee is a FSC-licensed corporate service provider (Management Licence) or another person resident in Mauritius authorised by the FSC to provide trustee services. Under article 28, a trust may have up to 4 trustees, including at least one qualified trustee at all times.
What each tool is good at
Where a usufruct fits
A usufruct is simple and personal. It needs no trustee and no separate fund. It suits a clear, limited aim: letting a surviving spouse or a parent remain in the family home for life while the children already hold the bare ownership.
Its limits are the other side of its simplicity:
- The beneficiary of the usufruct has a fixed, personal right. There is no one with discretion to adapt it if circumstances change.
- It ends with a person. If the plan is to support grandchildren or later generations, a usufruct does not carry that on by itself.
- Bare owners may disagree. Several children as bare owners must act together on major decisions about the property, which can stall a sale or a renovation.
- It does not fit every kind of asset. A usufruct over a portfolio of securities or a business is harder to run than over a house.
For a full picture of the Civil Code succession rules around these arrangements, see forced heirship and trusts in Mauritius.
Where a trust fits
A trust is designed for continuity and flexibility. The deed can set out how income is used, who benefits at each stage, and what happens when a beneficiary dies, marries or comes of age. A discretionary trust lets the trustee decide between beneficiaries within the limits of the deed, while a fixed trust sets the entitlements in advance; the comparison of discretionary and fixed trusts covers the difference.
A trust can also hold different asset types together. The same deed may cover a home, shares in a family company and a bank portfolio. A letter of wishes can guide the trustee without binding it.
The trade-off is structure. A trust needs a trustee, a deed and ongoing administration. The trustee keeps accounts and records, and under the Financial Services Act 2007 a qualified trustee has reporting duties toward the FSC. The cost of that machinery is a real consideration for modest estates; costs and set-up are covered elsewhere and are not repeated here.
Control and revocability
In a usufruct, control is divided by law. The usufructuary decides how to use the property within the rules; the bare owner cannot interfere with that use but keeps the ownership and can usually dispose of it subject to the usufruct.
In a trust, the trustee controls the assets within the deed. Article 11 of the Trusts Act 2001 presumes that a trust is irrevocable by the settlor and the settlor's legal representative unless the deed expressly provides for revocation. Under article 8, the settlor may also be a trustee, beneficiary, protector or enforcer, but cannot be the sole beneficiary of the trust created. How far a settlor may keep influence is discussed in how much control a settlor can keep.
A trust deed can add a protector, who advises the trustee and may hold powers such as appointing and removing trustees (article 24). See trust protector in Mauritius for how this works. A usufruct has no equivalent oversight figure.
Duration
A usufruct is generally linked to the lifetime of the usufructuary. When that person dies, the property is reunited with the bare owner. There is no need to wind anything up.
A trust is not tied to a life. Under article 9 of the Trusts Act 2001, the maximum duration of a trust other than a purpose trust is 99 years from its creation, unless it ends earlier. A purpose trust may be perpetual under article 9(2), but that is a different tool and does not describe a family trust for beneficiaries. For details, see how long a Mauritius trust can last.
One rule matters for property. Article 10 allows income to be accumulated for the full maximum duration of the trust, but not beyond 25 years where the trust holds immovable property situated in Mauritius.
Succession, forced heirship and creditors
Both tools sit next to Mauritian succession law, and neither is a way around it by default. A usufruct is made within the Civil Code framework, so the rules on reserved shares for children continue to apply to the gift or will that creates it.
A trust is a different matter. Article 8 of the Trusts Act 2001 provides that a transfer by a non-citizen settlor cannot be set aside under the succession rules of the settlor's domicile or nationality. That is a statutory protection with conditions and limits, not an assurance of any outcome, and a court can still examine whether a structure is genuine. See sham trusts and can you disinherit a child in Mauritius.
On creditors, a usufruct gives the usufructuary a right that creditors may reach, and the bare ownership may also be exposed to the bare owner's creditors. A trust can include protective terms: article 18 recognises spendthrift and protective trusts, where a beneficiary's interest may be terminated, restricted or suspended on insolvency or seizure of the beneficiary's assets. Whether any of this works for a particular family depends on timing and facts; see trusts and creditors.
Property held in Mauritius
Where the family asset is land or a house in Mauritius, two specific rules deserve attention. First, a trust that holds immovable property in Mauritius is subject to the 25-year limit on accumulation of income noted above. Second, article 19(3) of the Trusts Act 2001 declares void the transfer of immovable property situated in Mauritius to a non-charitable purpose trust. That rule concerns purpose trusts, not ordinary family trusts for named beneficiaries.
For a foreign trust, article 60 of the Trusts Act 2001 provides that the trust is governed by its terms and its own law, but is not enforceable in Mauritius where that would constitute an offence, be contrary to public policy or apply directly to immovable property in Mauritius. Anyone holding property in Mauritius through a foreign structure needs advice on how this rule applies. See can a trust own property in Mauritius.
Investment property is a separate topic and is not covered here.
Side-by-side comparison
| Criterion | Usufruct (Civil Code) | Trust (Trusts Act 2001) |
|---|---|---|
| Source of the rules | Civil Code | Trusts Act 2001 and the trust deed |
| Who holds title | Bare owner holds ownership; usufructuary holds the right of enjoyment | Trustee holds legal title for the beneficiaries |
| Who controls day-to-day | The usufructuary, within the Civil Code limits | The trustee, within the deed |
| Flexibility | Low; the right is fixed | High; the deed can allow discretion |
| Typical duration | Usually the life of the usufructuary | Up to 99 years for a non-purpose trust |
| Professional involvement | None required | Qualified trustee required |
| Oversight figure | None | Optional protector or enforcer |
| Assets covered | Mainly a single asset such as a home | A mix of assets under one deed |
| Revocability | Governed by the instrument creating it | Presumed irrevocable unless the deed says otherwise |
| Ongoing administration | Light | Accounts, records and trustee duties |
Choosing between them
Is the only aim to let one person live in or use a single property for life?
Should the arrangement continue after that person's death, for later generations?
Must someone with discretion adjust who benefits as circumstances change?
The two are not exclusive. Some families use a usufruct for the home and a trust for the rest of their wealth. Others place a property in a trust and give a family member the right to occupy it under the deed. For the broader comparison with a will, see trust or will for passing on assets, and for the general mechanics of a family arrangement see family trust in Mauritius.
If you want a qualified firm to look at your situation, you can send a request through the contact form.
FAQ
Is a usufruct the same as a life interest trust?
No. A usufruct is a Civil Code right that splits ownership between the usufructuary and the bare owner. A life interest trust is a trust in which a trustee holds the assets and a beneficiary is entitled to the income for life. The practical result can look alike, but the legal mechanics, the administration and the flexibility differ. See life interest trusts.
Can a trust and a usufruct be used together?
They can coexist in a family plan, for example a usufruct over the family home and a trust over the remaining assets. How they interact with succession rules and with each other depends on the drafting, so it needs a specialist's review.
Which one lasts longer?
A usufruct generally lasts for the life of the usufructuary. A trust other than a purpose trust may last up to 99 years from its creation under article 9 of the Trusts Act 2001, unless it ends earlier.
Does a trust avoid the succession rules that apply to a usufruct?
Not automatically. A trust is a distinct legal tool, and article 8 of the Trusts Act 2001 contains a protection for transfers by non-citizen settlors against the succession rules of their domicile or nationality. This is conditional, and courts can examine the substance of a structure. See does a trust avoid succession formalities.
Who looks after the property in each case?
In a usufruct, the usufructuary uses and maintains it within the Civil Code rules. In a trust, the trustee administers it under the deed, with a qualified trustee involved. The trustee's duties are described in duties of a trustee toward the family.
Can the person who sets up a trust keep living in the property?
The settlor can be a beneficiary under article 8 of the Trusts Act 2001, but cannot be the only beneficiary. Whether occupation is possible depends on the deed and on the trustee's powers. Advice is needed on the consequences for the family and for tax.
Is a trust always more expensive than a usufruct?
A trust involves a trustee, a deed and ongoing administration, so it generally carries recurring costs that a usufruct does not. A usufruct has its own formalities and may create later friction between the usufructuary and the bare owners. Which is cheaper over time depends on the family and the assets.