Malta is a particularly favourable jurisdiction in which to establish family wealth structures and, in particular, family trust companies.

A Malta family trust company is akin to a private trust company found in other jurisdictions, such as Jersey. Providers of both trusts and foundations in Malta are highly regulated by the MFSA.

Legislation amending the Trusts and Trustees Act of 2004 in 2014 has resulted in the introduction of the concept of family trusts companies, property settled upon trusts for the present and future needs of family members and family dependants.

Family trust companies offer some interesting opportunities for high-net-worth individuals and families who favour a tailor made trustee solution in which they can actively take part in, on a formal or informal basis, especially when compared to mainstream professional or institutional trustees.

Family trust companies that satisfy the prescribed legal requirements are not required to obtain full authorisation, although they must apply for registration with the MFSA and adhere to ongoing compliance and other regulatory conditions, which include:

• Set-up as a company (Ltd) with objects and activities limited to acting as a trustee to specific settlors in respect of the family estate, for the benefit of the family members
• Maximum of five settlors
• Minimum of three board directors, one of which must have knowledge of trust law and administration
• Limited to acting as a trustee to specific settlors in respect of the family estate, for the benefit of the family members
• Money Laundering Reporting Officer (MLRO) required

Dependents and family members in respect of family trust companies refer to any individuals related to the settlor creating the trust, by consanguinity, adoption or affinity in the direct line up to any degree, whether as an ascendant or descendant. If in the collateral line, this is up to the fifth degree inclusively.

The trust instrument is to provide for a charitable purpose, or an institution set up for such purpose, which will benefit as a residual beneficiary upon the termination of the family trust.

• Organising the implementation and ongoing maintenance of family wealth and investment structures
• Establishment of family trusts/foundations and family trust companies
• Acting as ‘knowledgeable’ director of family trust companies
• Ensure ongoing legal and regulatory compliance
• Regular asset summaries, activity reports and accounts
• Oversight of asset, investment strategies and third-party providers
• Preparation of management and financial accounts

Our overall aim is to ensure that the operation of tax structures are established and sensibly governed, while being run efficiently and effectively.