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Popularity of Mauritius Trusts to Protect Assets

By Rick Rein

pMauritius has become a jurisdiction of choice for asset protection planning because of its established financial services, stable economy and favorable tax system. A trust with non-resident settlors and beneficiaries are exempt from taxation./p pUnder the Trusts Act 2001, the trust property is vested in Trustees chosen by the settlor and appointed to hold and manage the assets for the benefit of the beneficiaries. Trustees are prohibited from being beneficiaries if there is only one#0160;Trustee or one beneficiary. A trust can have a Managing Trustee in Mauritius and a Custodian Trustee, one in possession of the trust property, in another jurisdiction. Therefore, for creditors, one cannot assume that locating a Mauritius trust means the assets are in that jurisdiction as well./p pThe Trustee is under an obligation to exercise independent judgment in deciding what is in the best interest of the beneficiaries. The Trustee must preserve and enhance the value of the trust property with due regard to the preservation of the trust property and the assertion or protection of title to it. Hence, Mauritius Trusts can have a Protector whose sole purpose is to keep the trust property away from creditors. /p pLastly, there is no mandatory requirement to register the trust. Thus, locating information about a Mauritius Trust through public records may be difficult. /p

Full post as published by International Asset Recovery Law Blog on December 17, 2008 (boomark / email).