Best Trusts Lawyers in Floriana

About Trusts Law in Floriana, Malta

Trusts play an important role in wealth management, estate planning, and asset protection in Malta, and Floriana is no exception as a hub for legal and financial services. Malta's legal system incorporates both civil law and aspects of common law, including trust legislation. The concept of trusts was formally introduced in Malta with the Trusts and Trustees Act, which provides the legal framework governing the setup, management, and administration of trusts. Floriana hosts many law firms and practitioners specializing in trust-related legal advice, making it a practical destination for those seeking guidance on these matters.

Why You May Need a Lawyer

There are several common scenarios where seeking legal advice regarding trusts becomes essential, such as:

• Establishing a trust for estate planning, succession, or asset protection purposes
• Appointing or removing trustees
• Resolving disputes between beneficiaries or trustees
• Changing the terms or structure of an existing trust
• Understanding the tax implications of setting up or benefiting from a trust
• Navigating the legal requirements for cross-border trusts or international estate planning
• Ensuring compliance with local and international anti-money laundering regulations

Legal expertise helps ensure the trust is established correctly, assets are protected as intended, and all parties understand their rights and obligations under the law.

Local Laws Overview

Trusts in Malta, including Floriana, are primarily governed by the Trusts and Trustees Act. Some key aspects of the local trust laws include:

• Recognition of Trusts: Malta recognizes both local and foreign trusts, provided they are created according to law.
• Types of Trusts: Common forms include discretionary trusts, fixed interest trusts, and purpose trusts.
• Trust Duration: Trusts may exist for up to 125 years unless terminated or otherwise specified.
• Regulation of Trustees: Only licensed individuals or legal persons regulated by the Malta Financial Services Authority (MFSA) can act as professional trustees.
• Duties of Trustees: Trustees are subject to robust fiduciary duties, including managing trust property prudently and in the best interest of beneficiaries.
• Beneficiary Rights: Beneficiaries may have access to information about the trust and its management, subject to the trust deed.
• Confidentiality and Reporting: Certain details must be reported to regulatory authorities, ensuring compliance with anti-money laundering laws.
• Taxation: Treatment of trusts for tax purposes depends on the residence of the settlor, trustees, and beneficiaries, as well as the source of income.

Frequently Asked Questions

What is a trust?

A trust is a legal arrangement where a person (the settlor) transfers assets to another person or entity (the trustee), who manages those assets for the benefit of one or more individuals or for a specific purpose.

Can anyone set up a trust in Floriana, Malta?

Yes, individuals and legal entities can establish a trust in Floriana subject to compliance with Maltese law, including anti-money laundering regulations.

Who can act as a trustee?

Only persons licensed by the Malta Financial Services Authority can act as professional trustees, although private individuals may act as trustees in some circumstances, provided they do not do so by way of business.

What are the main uses of trusts in Malta?

Common uses include estate planning, asset protection, tax planning, holding of family assets, charitable purposes, and corporate structuring.

Are trusts in Malta confidential?

Trusts offer a degree of confidentiality; however, trustees and involved parties must comply with specific disclosure and reporting requirements under Maltese law, especially relating to anti-money laundering regulations.

How long can a trust exist in Malta?

Malta allows trusts to exist for up to 125 years or less if the trust deed specifies a shorter period.

Can a foreign trust be recognized in Floriana, Malta?

Yes, Malta recognizes trusts governed by foreign law, provided their recognition does not contradict Maltese public policy.

Are trusts taxed in Malta?

The taxation of trusts depends on the type of trust, the residence of the settlor, trustees, and beneficiaries, and the source of the trust's income. Professional advice should be sought for individual cases.

Can the terms of a trust be changed?

Trust terms can be amended if the trust instrument allows it or all beneficiaries consent. Otherwise, changes may be difficult and may require court intervention.

What happens if a trustee fails in their duties?

If a trustee breaches their duties, beneficiaries or other interested parties can take legal action against the trustee. Trustees may be removed, and may be liable for damages.

Additional Resources

If you are seeking more information or need assistance regarding trusts in Floriana, Malta, you may find the following resources helpful:

• Malta Financial Services Authority (MFSA) - regulates trustees and provides public information on licensed entities
• Office of the Commissioner for Revenue - provides guidance on taxation related to trusts
• Chamber of Advocates Malta - directory of qualified lawyers specializing in trusts and estate planning
• Public Registry Office - handles registration and certain public records relevant to trusts

Next Steps

If you need legal assistance regarding trusts in Floriana, Malta, consider the following steps:

• Define your goals, such as estate planning, asset protection, or business structuring
• Gather all relevant documents and information about your assets and family or business structure
• Research and contact a qualified lawyer or licensed trustee with experience in Maltese trust law
• Prepare a list of questions to discuss at your initial consultation
• Ensure you understand the proposed trust structure, your rights and obligations, and all related costs

Taking these steps will help you make informed decisions and safeguard your interests when dealing with trusts in Floriana.