A Malta Family Trust Company is Malta’s latest initiative to service families, as Malta is a particularly favourable jurisdiction in which to establish family wealth structures.

Providers of both trusts and foundations in Malta are highly regulated by the Malta Financial Services Authority.

In conjunction with Malta’s tax and fiscal rules, the establishment of holding, operating, investment and special purpose vehicles, including trusts and foundations.

Family trust companies

Legislation enacted pursuant to Article 52(3), amending the Trusts and Trustees Act has resulted in the introduction of the concept of Family Trusts Companies – property settled upon trust for the present and future needs of family members and family dependants.

Family Trust Companies offer some very interesting opportunities for HNWIs and families who favour a tailor-made trustee solution in which they can actively take part on a formal or informal basis, especially when compared to the 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 Malta Financial Services Authority and adhere to ongoing compliance and other regulatory conditions. These 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

Acumum’s service offering

Our essential starting point when advising on establishment, restructuring and re-domiciliation, is to understand the particular circumstances and dynamics of the family and the purposes of the office. This provides the framework for effective and enduring legal and structuring advice. This includes:

• Organising the implementation and ongoing maintenance of family wealth and investment structures
• Establishment of family trusts/foundations and family trust companies
• Acting as a ‘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 operating and tax structures are established and governed sensibly, as well as run efficiently and effectively.

More Information: Trusts – Foundations – Family Wealth & Estate Planning