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A trust for minor children in Mauritius is a way of setting assets aside for young beneficiaries and deciding in advance when, and under what conditions, they receive them. The assets are held by a trustee, not by the child and not by the parents personally, and they are released according to the terms written in the trust deed.
Families typically turn to this structure because a minor cannot manage significant assets alone, and because an outright gift hands over full control the moment the child is entitled. A trust separates the two questions: who owns the benefit, and who manages it until the child is ready.
This page covers the mechanics of a trust for minor children under the Trusts Act explained and the main design choices. It is general information, not advice: the right terms depend on the family, the assets and the countries involved, and should be reviewed by an adviser.
How a trust for minor children works
The settlor transfers assets to a trustee, who holds them for named beneficiaries or a defined class, such as "my children and their descendants". The deed sets out what the trustee may do with the capital and income while the children are young, and when the beneficiaries become entitled.
If you are new to the basics, what a trust is gives the underlying concept. For minors, three features matter most.
- Management without ownership by the child. The trustee, not the child, takes decisions about investments and payments.
- Timing set by the family. Entitlement can be tied to an age, to a milestone such as completing studies, or left to the trustee's judgement.
- Continuity. The trust carries on if a parent dies or becomes incapacitated, because the trustee is a separate party bound by the deed.
Setting the age or event for release
The main drafting choice is when the children receive the assets. The Trusts Act leaves this to the deed, so families have real flexibility, within the limits of the law.
Release at a fixed age
The simplest model gives each beneficiary the capital on reaching a stated age. It is predictable, but it ends the trustee's protection on a set date regardless of the beneficiary's circumstances.
Staged release
Many families prefer instalments: part of the capital at one age, more later. This lets a young adult learn to manage money gradually and keeps part of the fund in reserve.
Event-based release
The deed can link payments to events such as finishing a degree, buying a first home or starting a business. Conditions must be clear enough for a trustee to apply them objectively.
Discretion for the trustee
A discretionary trust lets the trustee decide who receives what and when, guided by a letter of wishes. This suits families with children of different ages and needs, but it relies heavily on the trustee's judgement. The trade-offs are set out in discretionary versus fixed trust.
What the law allows
Several provisions of the Trusts Act 2001 shape a trust for minors.
| Point | What the Act provides |
|---|---|
| Duration | A trust other than a purpose trust may last up to 99 years from creation, unless it ends earlier (section 9) |
| Accumulation of income | Possible for the full maximum duration, but limited to 25 years where the trust holds immovable property in Mauritius (section 10) |
| Revocability | A trust is presumed irrevocable by the settlor unless the deed expressly allows revocation (section 11) |
| Settlor's role | The settlor may also be trustee, beneficiary, protector or enforcer, but cannot be the sole beneficiary (section 8) |
| Trustees | At most 4 trustees, including at least one qualified trustee at all times (section 28) |
| Protective terms | A beneficiary's interest may be made subject to termination, restriction on transfer or suspension if the beneficiary becomes insolvent or assets are seized (section 18) |
The long maximum duration means a trust can comfortably outlast the minority of several children, and can also cover grandchildren. The accumulation rule matters if the fund will be growing for many years while the children are young, particularly where land or buildings in Mauritius are involved.
Who runs the trust
The trustee
The trustee holds the legal title and applies the deed. A qualified trustee under the Act is an FSC-licensed corporate service provider (Management Licence) or another Mauritius-resident person authorised by the FSC to provide trustee services. At least one trustee in the trust must be qualified. See duties of a trustee toward the family for what a trustee owes the beneficiaries.
Because the beneficiaries are children, the quality of trusteeship matters more than usual: there may be decades between the start of the trust and the last distribution. Families often choose a professional trustee for continuity, sometimes alongside a trusted relative.
The settlor
A parent or grandparent usually creates the trust. The Act lets the settlor stay involved, but a settlor who keeps too much control risks undermining the structure; how much control a settlor can keep explores the limits. The practical role is described in the settlor: role and limits.
The protector
The Act allows a protector, who may be an adult individual (including the settlor) or a legal person. Unless the deed says otherwise, a protector can remove and appoint trustees, fix the governing law, change the place of administration and withhold consent to certain acts, without becoming a trustee. For a long-running trust for children, a protector offers a check on the trustee. Whether one is worth having is discussed in do you need a trust protector.
The beneficiaries
Children are the beneficiaries, but their rights are limited while they are young. Beneficiaries and their expectations are covered in trust beneficiaries: rights and expectations.
Trust for grandchildren in Mauritius
A trust for grandchildren in Mauritius works on the same principles. The settlor, often a grandparent, names grandchildren, or a class that includes future grandchildren, as beneficiaries. The deed can treat existing and later-born grandchildren equally or differently.
Typical reasons include:
- funding education across several grandchildren without choosing shares today;
- passing wealth past a middle generation, for example where a child is not ready to manage it;
- keeping assets together within the family bloodline.
A grandparent's wishes also interact with succession rules, because Mauritian law protects certain heirs. The interaction is covered in forced heirship and trusts in Mauritius, and a dedicated page looks at providing for grandchildren through a trust.
Trust or alternatives for children
A trust is not the only way to provide for children. A gift to a child, a will with a testamentary arrangement, or a usufruct each achieve something different.
| Option | Control after the transfer | Management while the child is young |
|---|---|---|
| Outright gift | Passes to the child | Depends on family and legal arrangements |
| Will with a trust clause | Takes effect only on death | Trustee after death |
| Trust created in lifetime | Passes to the trustee under the deed | Trustee from the start |
For comparisons see trust or will and gift to children or trust. A testamentary trust is created by a will rather than during the settlor's lifetime.
Tax points to check
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%. The former exemption for a non-resident trust that filed a declaration was repealed by the Finance Act 2021, with deemed effect from 1 July 2021, and no longer appears in the consolidated text.
Under section 46(4), any distribution to a trust beneficiary is deemed a dividend for the beneficiary. How that applies to a child, and to a beneficiary living abroad, depends on where the family is resident and on the rules of that country. Treat this as a prompt to take advice, not as a conclusion. Further detail is in how trusts are taxed in Mauritius.
Foundations and minors
Some families compare a trust with a foundation. A Foundation has legal personality only once registered with the Registrar and issued a certificate of registration, whereas a trust has none. Under section 17 of the Foundations Act 2012, minors cannot sit on a Foundation's Council, and at least one member must usually reside in Mauritius. A foundation can still benefit children; the difference lies in the governance. See trust versus foundation for the comparison.
Practical checklist before you decide
- Identify which children and grandchildren should benefit, and whether future ones are included
- Decide the age or event for release, and whether it is staged
- Choose a trustee, and confirm at least one is a qualified trustee
- Decide whether to add a protector
- Prepare a letter of wishes for the trustee
- Check the tax position in every country where the family lives
- Review how the trust sits alongside the family's wills and heirship rights
The wider picture is in the family trust overview. To discuss your own situation, use the contact form.
FAQ
Can a minor be the beneficiary of a Mauritius trust?
Yes. A trust can name minor children as beneficiaries, individually or as a class. The trustee holds and manages the assets while they are young, and the deed sets when and how they become entitled.
Who manages the money until the child is older?
The trustee. At least one trustee must be a qualified trustee, meaning an FSC-licensed corporate service provider (Management Licence) or another Mauritius-resident person authorised by the FSC. A protector can supervise, but does not manage the assets.
Can I decide at what age my children receive the assets?
Yes. The deed can fix an age, release assets in stages, tie them to events such as finishing education, or leave timing to the trustee's discretion. The choice should be written clearly so the trustee can apply it without dispute.
Can I change my mind after setting up the trust?
A trust is presumed irrevocable by the settlor unless the deed expressly includes a power of revocation. Any power you keep affects how the structure is viewed, so discuss it with an adviser before signing.
How long can a trust for children last?
A trust other than a purpose trust may last up to 99 years from its creation, unless it ends earlier. That is long enough to cover children and grandchildren.
Can I be both settlor and beneficiary?
The Trusts Act allows the settlor to be a beneficiary, trustee, protector or enforcer, but not the only beneficiary. A parent can therefore keep an interest alongside the children, subject to the deed and to tax advice.
Is a trust for grandchildren different from one for children?
The legal framework is the same. The difference is in drafting: the beneficiary class, how later-born grandchildren are treated, and how the trust fits with the rights of the settlor's own children.
Does a trust for minors remove the need for a will?
No. A trust covers only the assets transferred to it. Other assets still pass under succession rules, so a will usually remains useful. See does a trust avoid succession formalities.