Types of Trust Available in Mauritius

The types of trust in Mauritius at a glance

The types of trust in Mauritius are not separate legal products with their own statutes. They are variations of one legal tool, the trust governed by the Trusts Act 2001, shaped by what the trust deed says. A family chooses a type by answering a few practical questions: who should benefit, who decides when and how much, when the assets should pass on, and how much protection the beneficiaries need.

If you are still getting to grips with the basics, start with what a trust is and come back to this map. The kinds of trust in Mauritius that matter most to families can be grouped along four lines:

• How benefits are decided: discretionary or fixed.
• Whether the settlor can take the trust back: revocable or irrevocable.
• When and how the trust starts: during life or on death.
• What the trust is designed to do: protect, provide for a person over time, or hold assets for children.

Most real structures combine several of these features. A single deed can be discretionary, irrevocable, created during the settlor's life and protective in its wording.

A summary table of the main trust types

Discretionary and fixed trusts

This is the first and most important distinction.

Discretionary trust

In a discretionary trust, no beneficiary has a set entitlement. The trustee decides, within the terms of the deed, who receives income or capital and in what proportions. The settlor usually records non-binding preferences in a letter of wishes.

It fits families whose circumstances are likely to change: children who are still young, grandchildren yet to be born, or a mix of heirs with very different needs. The price of flexibility is trust in the trustee, which is why the choice of trustee and the wording of the deed matter so much.

Fixed trust

In a fixed trust, the deed itself states what each beneficiary receives, for example an equal share of capital or a defined share of income. The trustee administers the assets but has little room to choose between beneficiaries.

It suits families who want certainty and are comfortable that the split will still look right in many years. It is less able to adapt if a beneficiary divorces, falls ill or simply turns out to need something different.

The full comparison is in discretionary trust vs fixed trust. In practice, many deeds sit between the two, fixing a broad class of beneficiaries while leaving the trustee latitude within it.

Revocable and irrevocable trusts

Under the Trusts Act 2001, a trust is presumed to be irrevocable by the settlor and the settlor's legal representative unless the deed expressly provides a power of revocation. A trust that keeps such a power is described as revocable.

The difference changes how the structure behaves. An irrevocable trust is a real transfer: the settlor lets go of the assets. A revocable trust leaves the door open to take them back, which can weaken the protection a family may be hoping for and invite questions about whether the settlor truly parted with control. Our page on revocable vs irrevocable trusts sets out the consequences in more detail.

The law also lets a settlor be a trustee, a beneficiary, a protector or an enforcer, but not the only beneficiary of the trust they created. Keeping too many powers is a separate risk, because a trust must not be a sham.

Life interest trusts

A life interest trust gives one person the right to enjoy assets, or the income from them, for the rest of their life. When that person dies, the capital passes to other named beneficiaries, often the children.

This is the classic answer to a family tension: the settlor wants a spouse to be looked after while ensuring the assets eventually reach children, including children from an earlier relationship. The life interest trust page explains how the interest is drafted and what happens at the end of it.

Testamentary trusts

A testamentary trust is created by a will and takes effect only on death. Until then the person can change their mind freely, and nothing leaves their estate.

It is a natural fit for someone whose main goal is orderly succession rather than lifetime asset planning. A testamentary trust still has to respect the rules on forced heirship that apply to the estate, so it is not a way around reserved shares. By contrast, a trust created during life (a lifetime or inter vivos trust) starts working immediately and keeps assets outside the estate, subject to the rules on forced heirship and on challenges.

Trusts for minor children

Children cannot manage substantial assets, and a trust for them lets a trustee hold and invest the property until the deed says they may receive it. The deed can stage the benefit, for example paying for education now and releasing capital later, rather than handing everything over at once.

The questions to settle are what the trustee may spend on the child, the age or event at which capital is released, and who takes over if the child dies. See trusts for minor children for the detail. The same approach works for grandchildren.

Protective or spendthrift trusts

The Trusts Act 2001 recognises the protective, or spendthrift, trust. In such a trust, a beneficiary's interest can be made subject to termination, restriction on transfer or suspension if the beneficiary becomes insolvent or if their property is seized.

This is relevant for an heir who is financially imprudent, in business with significant risk, or likely to face claims. Rather than owning assets outright, which creditors could pursue, the beneficiary holds an interest that the trustee controls. The scope and limits of this tool are covered in protective trusts. No trust can promise protection in every case, and a court may look through arrangements made to defeat existing creditors.

Purpose trusts and charitable trusts

The Trusts Act 2001 also allows trusts that hold assets for a purpose rather than for beneficiaries, and a specific category of charitable trusts. Because they serve a different objective from family planning, they are outside the scope of this guide.

Features that apply to every type

Whatever type is chosen, several rules from the Trusts Act 2001 and related legislation stay the same.

• Qualified trustee. A trust must have at most 4 trustees, of whom at least 1 must be a qualified trustee at all times. A qualified trustee is a FSC-licensed corporate service provider (Management Licence) or another Mauritius-resident person authorised by the Financial Services Commission to provide trustee services. The trust does not become invalid or lapse merely because a trustee or qualified trustee is missing.
• Duration. A trust other than a purpose trust may last up to 99 years from creation, unless it ends earlier. Income may be accumulated throughout that period, but for 25 years at most where the trust holds immovable property situated in Mauritius.
• Protector. Any type can have a protector, an optional person or entity who advises the trustee and may hold powers such as removing and appointing trustees. See trust protectors for how the role works.
• Records and registers. The trustee must keep up-to-date accounts and records, including a register of beneficiaries and settlors, and the Financial Services Commission keeps a register of trusts that have a qualified trustee.
• Confidentiality. The trustee keeps information about the trust confidential, and a court orders disclosure only on the request of an investigating authority when the information is required in good faith for an investigation or trial relating to financial crime.

Tax treatment: the type does not change the headline rule

Tax is often assumed to depend on the type of trust. Under the Income Tax Act 1995, as consolidated up to the Finance Act 2026, a trust is taxable on its taxable income at the Part IV rate of the First Schedule, which is 15%. A distribution to a beneficiary is deemed to be a dividend in the beneficiary's hands.

The older exemption for a non-resident trust on filing a declaration was repealed by the Finance Act 2021, with deemed effect from 1 July 2021. The provision that still refers to trusts with a non-resident settlor and non-resident beneficiaries does not lower the 15% rate. Individual outcomes depend on residence, the assets and the home country of the people involved. See how trusts are taxed in Mauritius and take advice before relying on any assumption.

Which type fits which situation?

This tree only points to a starting place. Many families need a blend, and the answer depends on the family's residence, assets, and the heirs' rights. A short checklist helps frame the discussion with an adviser:

• List the people you want to provide for, now and in the future
• Decide how much flexibility the trustee should have
• Decide whether you need the power to revoke the trust
• Identify any beneficiary who may need protection from creditors
• Check how forced heirship applies to your estate
• Consider whether a protector is needed

Choosing a type with the law in mind

Mauritian succession law reserves part of an estate to certain heirs, and the choice of trust does not remove that issue by itself. Read forced heirship and trusts before assuming that a particular type solves it. Equally, the Trusts Act explained page is the best next step if you want to see how the sections cited above fit together.

If you want a qualified firm to look at your own situation, the site has one request form, available at contact.