Trust types and duration under Mauritius law

How the Act defines a trust

The Act defines a trust through a trustee's fiduciary obligation over property the trustee does not own in their own right. The property may be held for a beneficiary, for a purpose, or for both a beneficiary and a purpose.^[2]

A beneficiary may be a natural person or a corporate person entitled to benefit under a trust, or someone in whose favour a power to distribute trust property may be exercised. Beneficiaries may already exist or be identified later under the trust's terms.^[1]

For most trusts created under an instrument, the Act requires writing and specified content, including the trustee's name, the trust's object and beneficiaries or beneficiary class, the property, and its duration.^[2]

Trusts for beneficiaries

A trust for beneficiaries may identify each beneficiary by name or make beneficiaries ascertainable by class or relationship to another person. Its terms may allow adding or excluding beneficiaries, and may attach a condition to a beneficiary's benefit.^[2]

The Act recognizes trusts where the trustee's distribution decisions involve discretion. In a discretionary charitable trust, the statute still treats it as charitable when its exclusive object falls within the statutory charitable purposes.^[2]

The Act permits a settlor also to serve as trustee, beneficiary, protector, or enforcer, but the settlor cannot be the trust's only beneficiary.^[2]

The Act also names protective or spendthrift trusts as a category. Its provisions describe how trust income is paid under the terms of such a trust, including discretionary payment arrangements after a defined determining event.^[2]

Charitable and purpose trusts

A purpose trust may exist without any beneficiary. To be valid and enforceable, its purpose must be specific, reasonable, and capable of fulfilment, and its terms must provide an enforcer and successor, include at least one qualified trustee, and address disposition of surplus assets at termination.^[2]

The Act defines a charitable trust by its exclusive purpose or object. The listed objects include relief of poverty, education, religion, environmental protection, human rights and fundamental freedoms, and another purpose beneficial to the public generally.^[2]

A charitable trust may also benefit a section of the public or private persons, may allow distribution to be deferred within the trust's duration, and may be discretionary. The Act states that charitable objects may be pursued in Mauritius or elsewhere.^[2]

The enforcer's statutory duty is to enforce the purpose trust according to its terms and purposes. A person cannot act as both trustee and enforcer of the same trust.^[2]

Trustee, protector and management roles

A trust's terms may establish a protector to advise the trustee and give the protector powers. They may also require the protector's prior consent before trustees exercise specified powers or discretions.^[2]

Unless the trust terms provide otherwise, a protector may remove and appoint trustees, determine the trust's proper law, change its forum of administration, or withhold consent to specified trustee actions.^[2]

The terms may separate custody of trust property from its management. A custodian trustee holds the property, while management and the exercise of trustee powers and discretions remain with the managing trustee under the statutory arrangement.^[2]

A trust may reserve the exercise of trustee powers to a managing trustee. The Act also permits settlors and beneficiaries to give trustees letters of wishes, or allows trustees to prepare memoranda recording those wishes.^[2]

Duration and accumulation

A trust other than a purpose trust may last no more than 99 years from its creation, unless it ends earlier. The statute treats purpose trusts separately: under section 9(2), a purpose trust, whether charitable or not, may be of perpetual duration.^[2]

Section 9(2) was amended by Act 20 of 2011, effective 16 July 2011.

Trust terms may direct or authorize accumulation of all or part of income for a period no longer than the trust's maximum duration. If trust property includes immovable property in Mauritius, accumulation may not exceed 25 years.^[2]

Income that is not accumulated is distributed subject to maintenance or advancement powers and the trust's other terms. For a class trust with income interests and no existing class member, income is accumulated and retained until a member exists or the class closes.^[2]

Questions and answers

Related resources

Related glossary terms

• Unit trust: The Jersey Trusts Law defines a unit trust by its purpose or effect of giving investors participation as beneficiaries in profits or income from property.
• Trust: The Hague Convention describes a trust as a relationship in which a settlor places assets under a trustee's control for beneficiaries or a specified purpose.

Related articles and guides

• Mauritius courts and legal system structure: Mauritius has a two-tier judicial system. The Supreme Court hears first-instance cases and also hears appeals from subordinate courts across the country.
• Trust types and duration under Seychelles law: Seychelles law recognizes beneficiary and purpose trusts, with rules on trustees and settlors and on trust duration, set out by statute for each trust type.

Tools and official documents

• Foreign trust reporting role finder: Tick the roles that describe a connection to a foreign trust or foreign account to see the forms the IRS and FinCEN instructions discuss. Roles can overlap.

Related pages

• Mauritius: overview: Start page for this jurisdiction.
• Trust legislation
• Trustee regulation and licensing
• Taxation of trusts
• Reporting and information exchange