- Confidentiality of trustees’ deliberations, and of the identities of the settlor and beneficiaries;
- Unenforceability of civil law forced heir-ship rules on transfers to the trust;
- Concept of managing and custodian trustees;
- Recognition of purpose trusts with no perpetuity rules;
- Possibility for migration of the trust;
- Possibility to establish letters and memorandum of wishes;
- Possibility to appoint a protector;
- Possibility to accumulate income for any period during the duration of the trust;
- Possibility of resident trusts to benefit from the network of Double Tax Treaties;
- Exemption of non-resident beneficiaries from income tax on income from the trust; and
- Exemption of charitable trusts from tax.
A Trust is not a separate legal entity, but instead a legal relationship created by the beneficial owner creating the trust (the settlor) and the persons willing to undertake the office of trustee (the trustees).
As part of this relationship, property (the trust fund) is declared to be held by the trustees for the benefit of certain parties (the beneficiaries) or for certain purposes, creating a binding obligation on the part of the trustees to act in accordance with the terms of the trust.
The title to the Trust fund stands either (i) in the name of the trustee; or (ii) in the name of another person on the trustee’s behalf, and as such only the trustee has the power and the duty, in respect of which he is accountable, to manage, employ or dispose of the assets of the Trust Fund in accordance with the terms of the Trust and the special duties imposed upon him by the Act. The assets of the Trust Fund are separate from and do not form any part of the trustee’s own estate.
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