TRUSTS, FOUNDATIONS & VOLUNTARY ORGANISATIONS
Trusts & foundations are vehicles typically used for the preservation & management of assets which IURIS can assist in setting up & administering. IURIS also assists clients in the establishment & registration of voluntary organisations.
Malta has established itself as a trust jurisdiction worthy of serious consideration due to its comprehensive regulatory and legal framework. The Trusts and Trustees Act provides for the creation of trusts and for the authorisation and supervision of trustees.
A trust exists when property of any kind whatsoever is transferred by the settlor to a trustee who would be required to hold, administer and perhaps employ and deal in the said property for the benefit of beneficiaries and/or for a charitable purposes in accordance with the terms of the trust and the requirements of law. Property transferred or settled on trust effectively constitutes a separate fund owned by the trustee and which is distinct and separate from the personal property of the trustee, and from any other property held by the trustee under other trusts. As a result, personal creditors of the trustee are denied access and recourse against that trust property and, furthermore, that property would not form part of the trustee’s personal estate upon his insolvency or bankruptcy, nor of his estate upon his death.
Nevertheless, the trust is not a legal entity afforded legal personality – such as a company or a foundation. accordingly, the trust property is managed and administered via the legal personality of the trustee.
Foundations in Malta are regulated by the Second Schedule of the Civil Code (Chapter 16 of the laws of Malta). Foundations are legal organisations whereby assets are endowed by the founder for the fulfilment of a lawful purpose that is not commercial in nature.
IURIS can assist you with the setting up of a:
(a) Purpose foundation where the specific purpose of the foundation includes any charitable, philanthropic or other social purpose or as a non-profit organisation or other lawful purpose with no named beneficiaries; or
(b) Private foundation for the benefit of a named person or class of persons. Private foundations are generally used as a vehicle for estate planning and asset protection.
For a purpose foundation to be able to benefit from any government funding, grants or policies and make public collections, it needs to be enrolled as a Voluntary Organisation (“VO”) with the Office of the Commissioner for Voluntary Organisations (“CVO”) in terms of the Voluntary Organisations Act (“VOA”) and related subsidiary legislations.
IURIS advises and assists clients through the whole process of enrolment of a voluntary organisation as well as in regard to the various statutory reports, accounts and/or forms that are required to be filed by the foundation with the Registrar of Legal Persons and/ or the Commissioner of Voluntary Organisations on an annual basis.
IURIS can assist you with the following services:
- Advice pertinent to asset protection, estate planning, trusts, foundations and voluntary organisations
- Setting up and management of trusts, foundations, voluntary organisations or associations
- Registration with the Registrar of Legal Persons
- Enrolment with the Commissioner of Voluntary Organisations
- Statutory filings and compliance
- Appointments of trustees or administrators
- Tax planning advice and compliance
SIMON GALEA TESTAFERRATA