Trusts and Foundations: Frequently Asked Questions

A trust is an arrangement in which a settlor transfers assets to a trustee, who holds and manages them for beneficiaries or for a stated purpose. The Trusts Act 2001, in force since 1 December 2001, is the main statute. The guide to what a trust is explains the mechanism step by step.

Trusts are governed chiefly by the Trusts Act 2001 and foundations by the Foundations Act 2012, which came into force on 1 July 2012. The Financial Services Act 2007 adds licensing and register duties. See how Mauritius trust law works for families and the Trusts Act explained.

The main distinctions are discretionary and fixed trusts, revocable and irrevocable trusts, protective trusts, purpose trusts and charitable trusts. The types of trust page compares them.

In a discretionary trust the trustee, rather than the deed, decides who receives what and when, within the limits the deed sets. The discretionary trust page explains the idea, and discretionary vs fixed trust sets the two side by side.

Yes. Under section 8 of the Trusts Act 2001 the settlor may also be a trustee, beneficiary, protector or enforcer, but cannot be the sole beneficiary of the trust they created. The settlor's role and limits shows what follows in practice.

The more control a settlor keeps, the greater the risk that a court treats the trust as a sham. The answer turns on the powers reserved and how they are used; see how much control a settlor can keep and sham trusts.

The Trusts Act 2001 (section 11) presumes a trust to be irrevocable by the settlor and the settlor's legal representative, unless the deed expressly provides for revocation. See revocable vs irrevocable trust.

Under section 2 of the Trusts Act 2001, a qualified trustee is a FSC-licensed corporate service provider (Management Licence), or another person resident in Mauritius whom the FSC authorises to provide trustee services. The duties of a trustee page covers what the role involves.

Section 28 allows no more than four trustees, with at least one qualified trustee at all times. A trust does not become invalid or lapse merely because a trustee or qualified trustee is missing.

Section 24 of the Trusts Act 2001 lets a trust provide for a protector, who advises the trustee without becoming a trustee. Unless the deed says otherwise, the protector can remove and appoint trustees, set the governing law, change the place of administration and withhold consent to certain acts. Read about the trust protector and the powers of a protector.

Not every trust has one. The need depends on the assets, the family and the trustee chosen. The page on whether you need a trust protector lists the questions to ask.

An enforcer acts for a purpose trust, which has no beneficiary. Under section 21, the same person cannot be both trustee and enforcer of one trust, and the enforcer is entitled to the annual accounts, a copy of the deed and the legal advice the trustees receive. See enforcer vs protector.

Rights depend on the type of trust and the deed. A beneficiary can usually expect proper administration and, within limits, information. See trust beneficiaries and how a beneficiary can request information.

Under section 9, a trust other than a purpose trust lasts at most 99 years from its creation, unless it ends earlier. A purpose trust, charitable or not, may be perpetual. How long a Mauritius trust can last gives the detail.

Section 10 allows accumulation for the whole maximum duration of the trust, but not beyond 25 years where the trust holds immovable property situated in Mauritius.

It is a non-binding note in which the settlor tells the trustee how they would like discretions exercised. See letter of wishes.

Not automatically. Mauritian succession law protects certain heirs, and the result depends on the settlor's situation and the assets. For a non-citizen settlor, the Trusts Act provides that the transfer cannot be set aside under the succession rules of their domicile or nationality. Read forced heirship and trusts and whether you can disinherit a child, and take advice on your own case.

They do different jobs and are often used together. The comparison of trust and will explains what each can and cannot do.

The trust normally continues under its deed. The effects on beneficiaries and formalities are covered in what happens when the settlor dies.

Section 18 recognises protective or spendthrift provisions: a beneficiary's interest can be subject to termination, restraint on alienation or suspension if the beneficiary becomes insolvent or their property is seized. See spendthrift trusts.

It depends on when and why the assets were transferred and on what the creditor can prove. The guides on trusts and creditors and asset protection set out the limits, and no result can be promised.

Trustees must keep information about the trust confidential. Since the 2019 rewrite of section 33, a court orders disclosure only at the request of an investigating authority that needs the information in good faith for a financial crime investigation or proceedings. See trust confidentiality.

Yes, but it is a regulatory register. Section 26A of the Financial Services Act 2007 requires the FSC to keep a register of domestic trusts and foreign trusts that have at least one qualified trustee. It records details such as the trust deed, the parties and the governing law. See the register of trusts.

Section 38(3) requires up-to-date accounts and records, plus an alphabetical register of the names and last known addresses of each beneficiary and settlor. Accounting records must be kept for at least 5 years after the transactions concerned are completed.

Yes. Under section 60, a foreign trust is governed by its own terms and law, but it cannot be enforced in Mauritius where that would amount to an offence, be contrary to public policy or apply directly to immovable property situated in Mauritius. See recognition of foreign trusts.

Possibly, subject to the type of trust and the property rules. A transfer of immovable property in Mauritius to a non-charitable purpose trust is void under section 19(3). The guide on whether a trust can own property covers the conditions.

Tax treatment depends on the trust's residence, its income and who benefits. The overview of how trusts are taxed and the page on tax on distributions to beneficiaries give the framework, and a tax adviser should confirm how it applies to you.

A foundation has legal personality once registered with the Registrar of Companies, who is also the Registrar of Foundations, and issued a certificate of registration (section 5 of the Foundations Act 2012). A trust has no legal personality of its own. See trust vs foundation and what a foundation is.

Its council needs at least one member habitually resident in Mauritius (section 17), and it needs a secretary who is a FSC-licensed corporate service provider (Management Licence) or another Mauritius-resident person authorised by the FSC (section 13). The foundation council page lists who may not serve.

Under section 49A of the Income Tax Act, a foundation is taxable on its taxable income at the Part IV rate of the First Schedule (15%), and a distribution to a beneficiary is treated as a dividend. The exemption for foundations whose founder and beneficiaries are all non-resident was repealed by the Finance Act 2021, with deemed effect from 1 July 2021. Charitable foundations and trusts are listed among the exempt bodies in Part I of the Second Schedule. See how foundations are taxed.

Yes. Section 20 treats as charitable a trust whose exclusive object is one of the following: relief of poverty, education, religion, environmental protection, human rights and fundamental freedoms, or another purpose beneficial to the public. A foundation may also pursue charitable or non-charitable objects under the Foundations Act 2012.

A trust ends when its term expires, when its purpose is fulfilled or when the deed provides for it. See how a trust ends and how assets are distributed.

Regularly, and whenever family circumstances, assets or the law change. The annual family trust review checklist gives a practical list.

Costs and set-up steps depend on the structure and the provider chosen, and they are covered elsewhere rather than on this site. Use the contact form to ask for a request to be passed to a FSC-licensed corporate service provider (Management Licence).