Family Trust

Family Trust Company

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 Malta Financial Services Authority (MFSA).

Family Trust Companies

Legislation enacted pursuant to Article 52(3), amending the Trusts and Trustees Act of 2004 as amended in 2014, 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 HNWI’s 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 (MFSA) and adhere to on-going compliance and other regulatory conditions.

• 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 5 settlors
• Minimum of 3 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

Family Members & Dependents

Dependents and family members in respect of Family Trust Companies refer to any individual who is related to the settlor creating the trust, by consanguinity, adoption or affinity in the direct line up to any degree, whether ascendant or descendant. If in the collateral line, this is up to the fifth degree inclusively.

The trust instrument 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.

Acumum’s Service Offering

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

• Organising the implementation & on-going maintenance of family wealth & investment structures
• Establishment of family trusts / foundations & family trust companies
• Acting as ‘knowledgeable’ director of family trust companies
• Ensure on-going legal & regulatory compliance
• Regular asset summaries, activity reports & accounts
• Oversight of asset, investment strategies and 3rd party providers
• Preparation of management and financial accounts

Our overall aim is to ensure that the operating & tax structures are established & governed sensibly, as well as run efficiently & effectively.