Best Trusts Lawyers in Sliema

About Trusts Law in Sliema, Malta

A trust is a legal relationship where one party, known as the trustee, holds assets for the benefit of another, called the beneficiary. In Sliema and throughout Malta, trusts are governed by specific legislation. This legal structure is popular for asset protection, succession planning, and estate management. Malta stands out in the European context, as it recognises both domestic and foreign trusts. Trusts can be used for personal, commercial, charitable, and investment purposes. Trust law in Malta is sophisticated, allowing for flexibility while ensuring robust legal safeguards.

Why You May Need a Lawyer

Navigating trust law can be complex. There are several situations where seeking the guidance of a lawyer in Sliema is highly recommended:

• Creating a new trust, either for personal, family, or commercial reasons
• Transferring property or assets into a trust
• Ensuring the trust complies with Maltese laws and EU regulations
• Addressing disputes between trustees and beneficiaries
• Modifying or dissolving an existing trust
• Understanding the tax implications of a trust
• Ensuring the trust is managed and administered correctly
• Representing your interests if you are a beneficiary or trustee

Legal advice ensures your trust achieves its intended goals and minimizes risks of future disputes or complications.

Local Laws Overview

Trusts in Sliema, Malta are mostly governed by the Trusts and Trustees Act, Chapter 331 of the Laws of Malta. Key aspects of local trust law include:

• Recognition of trusts: Malta recognises both locally-settled trusts and those established under foreign law.
• Licensing of trustees: Only licensed professional trustees may manage trusts as a business. Private individuals may act as trustees if they do not do so by way of business.
• Duties of trustees: Trustees have a legal duty to act with prudence, in good faith, and in the best interests of beneficiaries. They must administer the trust according to its terms and the law.
• Asset protection: Trusts in Malta may offer protection from creditors, subject to certain limits and conditions.
• Tax treatment: Maltese trusts are treated as tax-translucent. That means certain trusts may pass tax obligations to beneficiaries rather than pay at the trust level, but various scenarios exist, depending on trust structure and residence of parties involved.
• Registration: Not all trusts need to be registered, but certain types - especially those holding Maltese immovable property or business assets - may require registration and compliance with anti-money laundering regulations.
• Duration: Most Maltese trusts can exist for up to 125 years unless wound up earlier, with exceptions for specific trusts like charitable trusts.

Frequently Asked Questions

What is a trust?

A trust is a legal arrangement where a trustee manages assets and property for the benefit of one or more beneficiaries, according to the terms set out in a trust deed.

Who can be a trustee in Malta?

Individuals who do not manage trusts as a business may act as private trustees. Professional trustees must be licensed by the Malta Financial Services Authority.

Do trusts in Malta need to be registered?

Not every trust requires registration. However, certain types, especially those holding land, businesses, or assets subject to regulatory oversight, must be registered with the relevant authorities.

Are trusts in Malta subject to tax?

Trusts can be taxed in various ways depending on their structure and the residency of the settlor and beneficiaries. Often, tax is paid at the beneficiary level, but it is important to seek advice to understand specific obligations.

How long can a trust last in Malta?

A standard trust in Malta can last up to 125 years, but charitable trusts may be perpetual.

Can foreign trusts be recognised in Malta?

Yes, Malta recognises foreign trusts, provided they comply with Maltese law where applicable, especially regarding property and certain regulatory matters.

What types of assets can be placed in a trust?

Assets such as cash, shares, real estate, securities, art, and other valuable items can be transferred into a Maltese trust, subject to restrictions and conditions.

Why should I consider a Maltese trust for my estate planning?

A Maltese trust can offer flexibility, confidentiality, asset protection, and potentially advantageous tax treatment for estate planning purposes.

What happens if a trustee breaches their duty?

Trustees who breach their duties can be held personally liable for any losses to the trust and may face legal penalties and removal from their position.

Do beneficiaries have rights under Maltese law?

Yes, beneficiaries have rights according to the terms of the trust deed and Maltese law, including the right to information and to hold trustees accountable.

Additional Resources

For anyone needing more information or assistance concerning trusts in Sliema, Malta, the following resources and organisations can be helpful:

• Malta Financial Services Authority (MFSA): Supervises and licenses professional trustees and fiduciary services providers.
• Office of the Commissioner for Revenue: Provides information on taxation related to trusts.
• Malta Chamber of Advocates: Offers directories of qualified lawyers and legal advice services.
• Local law firms in Sliema: Many law firms specialise in trusts, estate planning, and related legal matters.

Next Steps

If you need legal assistance with trusts in Sliema:

1. Identify your specific needs, such as setting up a trust, resolving a dispute, or understanding tax issues.
2. Gather all relevant documents and information concerning your assets and intended arrangements.
3. Contact a qualified lawyer or trust specialist in Sliema to schedule a consultation.
4. Ask your legal advisor to explain your options in clear terms, including costs and potential outcomes.
5. Follow up with any additional documentation or actions as advised by your lawyer.

Acting promptly and with the right legal support will help ensure your interests are protected and your trust arrangements are effective and compliant with Maltese law.