                          TRUSTS g CAP. 331.       1
CHAPTER 331
Substituted by:
XX. 1994.4.
TRUSTS ACT
To make provision with respect to Trusts and to provide for matters
ancillary or incidental thereto.
(30th June, 1989) *
Enacted by ACT XXXV of 1988, as amended by Acts XIV of 1989 and XX
of 1994.
Short title.
Amended by:
XX.1994.4.
l. This Act may be cited as the Trusts Act.
Interpretation. 
Amended by: 
XIV.1989.2;
XX.1994.4.  
Cap. 330.
2. (1) In this Act, unless the context otherwise requires -
"the Act" means the Malta Financial Services Centre Act;
"beneficiary" means a person entitled to benefit under a trust or
in whose favour a discretion to distribute property held in trust may
be exercised;
"body of persons" means any company, fellowship, society or
other association of persons, whether vested with legal personality
or not;
"breach of trust" has the meaning assigned to it by section 4 of
this Act;
"the Centre" means the Malta Financial Services Centre;
"company" means a limited liability company duly formed and
registered under any law for the time being in force in Malta, and
includes a similar body corporate incorporated or registered
abroad;
Cap. 374.
"the Convention" means the Hague Convention on the law
applicable to trusts and on their recognition, set out in all material
parts in the First Schedule to the Recognition of Trusts Act;
"the court" means the Second Hall of the Civil Court;
"foreign trust" means a trust the proper law of which is not the
law of Malta;
"the immovable property situated in Malta" includes shares,
stock or debentures in or of a company whose assets include
immovable property situated in Malta or in, or of a company other
than an offshore company, registered in Malta;
"Minister" means the Minister responsible for finance;
"nominee company" means a company authorised to perform the
functions of a nominee company as provided in section 47 of this
Act and a licensed nominee duly licensed under section 51A of the
Act;
* See  subsection  ( 2 )  of section 1 of the Act as originally enacted, which subsection has
been omitted under the Statute Law Revision Act, 1980, and Legal Notice 90 of 1989.
  2      CAP. 331. h                 TRUSTS
"person" includes a body of persons;
"prescribed" means prescribed by regulations made under this
Act;
"property" means property of any kind or description, whether
movable or immovable, personal or real, and wherever situated,
and in relation to rights and interests whether vested, contingent,
voidable or future;
"qualified person" in relation to a settlor or beneficiary of a trust
means a person not resident in Malta, and references to a person
qualified to be a settlor or a beneficiary shall be construed
accordingly;
"register" includes any kind of record;
"resident in Malta" has the same meaning as it has under the Act;
"settlor" means the person who makes the trust and includes a
person who provides trust property or makes a disposition on trust
or to a trust;
"trust" has the meaning described in section 3 of this Act, and
includes the trust property, the rights, powers, duties, interests,
relationships and obligations under a trust;
"trustee" in relation to a trust, means the person or persons
appointed to act as trustee or trustees of a trust in accordance with
the provisions of this Act;
"trust instrument" means the instrument whereby the trust is
created and includes any instrument varying the terms of the trust
and also a unilateral declaration of trust;
"trust property" means the property for the time being held on
trust;
"unilateral declaration of trust" has the meaning assigned to it by
subsection (2) of section 7 of this Act.
(2) Any reference in this Act to any law, or provision thereof,
shall be construed as a reference to that law or provision as from
time to time in force, and shall include a reference to any enactment
replacing such law or provision, and to any subsidiary legislation
made thereunder.
(3) Words and expressions used in this Act with reference to
any other law shall, so far as necessary to give effect to this Act and
consistently with the provisions thereof, have the same meaning as
they have in the law with reference to which they are used in the
Act.
Cap. 276.
(4) Any reference in this Act to a criminal offence committed
abroad, or against the law of a country other than Malta, or to an act
which if committed in Malta would be a criminal offence against
the law of Malta, shall be construed as limited to offences which
are extraditable for the purposes of section 5 of the Extradition Act.
(5) In this Act and in any regulations made thereunder, if there
is any conflict between the English and Maltese text, the English
text shall prevail.
                          TRUSTS g CAP. 331.       3
Amended by;
XX. 1994.4.
TRUSTS
Meaning of trust.
has vested in him property under an obligation to deal with that
property for the benefit of persons (called the beneficiaries),
whether or not yet ascertained or in existence, or for a purpose
which is not for the benefit of the trustee, or for both such benefit
and purpose aforesaid.
(2) The trust property shall be held by the trustee as a separate
fund, distinct and separate from that of the trustee.
(3) The trust property is held by or in the name or under the
control of the trustee who shall have full power as well as the duty
for which he is accountable, to administer, employ or dispose of the
trust property in accordance with the terms of the trust and any
special duties imposed on the trustee by any law applicable thereto,
to sue and be sued in respect of the trust and otherwise to act in all
matters concerning the trust.
Breach of trust.
the terms of the trust or by the proper law of the trust, and any act
or neglect on the part of the trustee which is not authorised or
excused by this Act, or the proper law of the trust or the terms of
the trust, shall be and is by this Act defined a breach of trust.
Proper law of 
trusts.
Amended by:
XX.1994.4.
5. (1) Subject to the provisions of this Act, a trust shall be
governed by its proper law and shall be interpreted and be
enforceable accordingly.
(2) The proper law of the trust shad be determined in
accordance with the Convention.
(3) The terms of a trust may provide for the proper law of the
trust to be changed from the law of Malta to the law of another
jurisdiction.
Trusts and their 
recognition.
Amended by:
XX.1994.4.
Cap. 374.
6. (1) When the proper law of the trust is the law of Malta,
the validity of a trust, its construction, its effects and the
administration of the trust shall be governed by this Act
notwithstanding the provisions of any other law and a trust shall be
governed by its proper law as determined in accordance with the
Recognition of Trusts Act in all other cases.
(2) A trust shall be governed by this Act if - 
( a ) the settlor is a qualified person, at the time the trust is
created;
( b ) the trust property does not include any immovable
property situated in Malta;
( c ) all the beneficiaries under the trust are qualified
persons at the time the trust is created and at the time
any one or more of them otherwise become entitled to
be a beneficiary:
  4      CAP. 331. h                 TRUSTS
Provided that if at the time the trust is created
none of the beneficiaries is resident in Malta and only
one or some of them are resident in Malta at the time
they otherwise become first entitled to be a
beneficiary, the trust shall continue to be a trust,
saving any other provisions of this Act:
Provided further that a trust shall be and remain a
trust notwithstanding that a person or persons resident
in Malta may benefit thereunder together with other
persons as members of a class that are beneficiaries of
a charitable trust.
Formalities for 
trusts.
Amended by:
XX.1994.4.
7. (1) A trust shall not be valid unless it is created by a will or
other written instrument:
Provided that a unilateral declaration of trust shall have the
same effect as a written instrument.
(2) A unilateral declaration of trust is a declaration in writing
made by a nominee company stating that it is the trustee of a trust,
giving the name of the trust and containing all the terms of the trust
as well as the names or the information enabling the identification
of all the beneficiaries.
(3) A unilateral declaration of trust need not contain the name
of the settlor, but in such a case the declaration shall contain a
statement by the nominee company that the settlor is a qualified
person on the date of the declaration.
Name of trust.
Substituted by:
XX.1994.4.
8. The instrument of trust shall include the name by which the
trust is to be known and registered, and such name may, subject to
the terms of the trust, be changed at any time.
Beneficiaries.  
Amended by: 
XX.1994.4.
9. (1) A person shall not be entitled to claim under a trust
unless he is -
( a ) identifiable by name, or
( b ) ascertainable by reference to a class or to a
relationship to some person, whether or not living at
the time which under the terms of the trust is the time
by reference to which members of a class are to be
determined;
and if there are no beneficiaries identifiable or ascertainable as
aforesaid the trust shall, unless the purpose of the trust is a
charitable purpose, be null.
(2) A settlor of a trust may be also a beneficiary under the trust.
(3) The terms of the trust may provide for the addition of a
person as a beneficiary, the exclusion of a beneficiary from benefit,
or the imposition on a beneficiary of an obligation as a condition
for benefit.
(4) A beneficiary may disclaim his whole interest; and such a
disclaimer shall be irrevocable.
(5) Subject to the terms of the trust, a beneficiary may disclaim
part of his interest, whether or not he has received some benefit
                          TRUSTS g CAP. 331.       5
from his interest; in any such case, but subject to the terms of the
trust, a disclaimer may, by the instrument by which the interest is
disclaimed, be made revocable, and shall then be capable of
revocation in the manner and under the circumstances therein
mentioned or referred to.
(6) The interest of a beneficiary under a trust shall constitute
movable property, even if the trust property includes immovable
property.
(7) Subject to the terms of the trust, a beneficiary may, by
instrument in writing, sell, charge, transfer or otherwise deal with
his interest in any manner.
Additional trust 
property.
Amended by: 
XX.1994.4.
10. Subject to the terms of the trust, the trustee of a trust may
accept from any person qualified to be a settlor any property to be
added to the trust property, other than immovable property situated
in Malta.
Invalidity of a 
trust.
Amended by: 
XX.1994.4.
11. (1) A trust shall be invalid and unenforceable in Malta - 
( a ) if it requires, purports or encourages the doing of any
act which is a criminal offence under the laws of Malta
or would be such offence if done in Malta;
( b ) if it has income accruing to, or derived by it, which
originates from an operation, transaction or other
activity which is a criminal offence under the laws of
Malta or which, if carried out in Malta, would be such
an offence, or comprises property the receipt,
ownership or control of which is or would be such an
offence as aforesaid.
(2) A trust shall also be invalid and unenforceable if the court
declares that the object for which it was created has failed or that
the terms of the trust are such that its performance is not possible.
(3) Where a trust is created for two or more purposes, any one
or more of which render it invalid and others do not - 
( a ) if the purposes cannot be properly separated, the trust
shall be invalid;
( b ) if the purposes can be properly separated, the trust
shall be valid with respect to the purpose or purposes
which do not affect its validity if the court so
determines and to the extent and under conditions
indicated by the court.
(4) Where the trustee of a trust is of the opinion that the trust is
or may be wholly or in part invalid he shall seek directives from the
court as to the validity or otherwise of the trust and as to any matter
concerning the property subject to that trust and his obligations in
relation thereto.
(5) Directives as provided in subsection (4) of this section may
also be requested by the settlor, and by any of the beneficiaries.
Duration of trusts.
anniversary of the date on which it came into existence and, unless
  6      CAP. 331. h                 TRUSTS
sooner terminated, shall then terminate.
(2) Subsection (1) of this section shall not apply to a trust for a
charitable purpose.
Protective trust.
Substituted by:
XX.1994. 4.
13. The terms of a trust may make the interest of a
beneficiary-
( a ) liable to termination; or
( b ) subject to restriction on alienation or dealing; or
( c ) subject to diminution or termination in the event of the
beneficiary becoming bankrupt, or insolvent, or any of
his property becoming liable to seizure for the benefit
of his creditors.
Variation of terms 
of a trust.
14. Where the terms of a trust provide for the variation of its
terms such power to vary shall be without prejudice to the power
vested by this Act in the court for the variations of the terms of a
trust.
Revocation of a 
trust.
15. (1) Where a trust or a power exercisable under a trust is by
the terms thereof, expressed to be -
( a ) revocable, whether wholly or in part; or
( b ) capable of variation,
no such revocation or variation shall prejudice anything lawfully
done by a trustee in relation to a trust before he receives notice of
such revocation or variation.
(2) Subject to the terms of the trust, if a trust is revoked the
trustee shall hold the trust property in trust for the settlor
absolutely.
(3) Where a trust is partly revoked subsection (2) of this
section shall apply to the property affected by the revocation.
Failure or lapse of 
interest.
16. (1) Subject to the terms of a trust and to any order of the
court, where -
( a ) an interest under a trust lapses; or
( b ) a trust terminates; or
( c ) there is no beneficiary and no person who can become
a beneficiary in accordance with the terms of the trust,
the interest of the property affected by such lapse, termination or
lack of beneficiary shall be held by the trustee in trust for the
settlor absolutely or, if he is dead, for his heirs.
(2) Where an interest or property is held by a trustee for a
charitable purpose which has ceased to exist or is no longer
applicable, that interest or property shall be held for such charitable
purposes as the court may declare to be consistent with the original
intention of the settlor, or as the court may otherwise determine.
(3) In this section "settlor" means the particular person who
                          TRUSTS g CAP. 331.       7
provided the interest or property affected as mentioned in
subsection (1) of this section.
(4) An application to the court under this section may be made
by any of the persons mentioned in subsection (3) of section 37 of
this Act.
Termination of a 
trust.
Amended by:
XX.1994.4.
17. (1) On the termination of a trust, the trust property shall
be distributed by the trustee within a reasonable time in accordance
with the terms of the trust to the persons entitled thereto.
 (2) Notwithstanding the provisions of subsection (1) of this
section, the trustee may require to be provided with reasonable
security for liabilities whether existing, future, contingent or
otherwise before distributing trust property.
(3) Subject to the provisions of this section and notwith-
standing the terms of the trust, where all the beneficiaries are in
existence and have been ascertained and no one of them is
interdicted or a minor, they may require the trustee to terminate the
trust and distribute the trust property among them.
(4) The court may, on the termination of a trust, or at any other
time -
( a ) require the trustee to distribute trust property;
( b ) direct the trustee not to distribute trust property; or
( c ) make such other order as it thinks fit.
(5) In this section "liabilities" includes contingent liabilities.
(6) An application to the court under this section may be made
by any of the persons mentioned in subsection (3) of section 37 of
this Act.
TRUSTEES 
Appointment of 
trustees.
Amended by: 
XIV.1989.3.
18. (1) Trustees are appointed by, or as provided in, the trust
instrument, and in such number as may be so provided.
(2) Only a nominee company authorised to act as trustee under
section 47 of this Act may be the sole trustee of a trust under this
Act; and where the trustees are more than one, one of such trustees
shall be a nominee company as aforesaid.
(3) Where there is no trustee or there is a vacancy among the
trustees which cannot otherwise be filled, the last former trustee or
any trustee, or any beneficiary or the Attorney General may apply
to the court for the appointment of a new trustee.
(4) The court -
( a ) upon being satisfied that an application made by
beneficiary has been served on the last former trustee
or on at least one of the other trustees, if any; and
( b ) having heard the representations made by the said
trustee or trustees, or by any beneficiary; and
  8      CAP. 331. h                 TRUSTS
( c ) having ascertained that the trustee indicated for the
purpose in the application or otherwise intended for
appointment as the new trustee is willing to act,
may make an order appointing a new trustee.
(5) Subject to the terms of the trust, a trustee appointed as a
new trustee under this section shall have the same powers,
discretions and duties as if he had originally been appointed
trustee.
(6) On the appointment of a new trustee anything requisite for
vesting the trust property in or under the control of the trustee for
the time being shall be, and may be required by the trustee or any
beneficiary to be, done.
Acceptance of 
trust.
19. (1) No one is obliged to accept appointment as trustee, but
if a nominee company appointed as trustee does any act or thing in
relation to the trust property consistent with the status of a trustee
of that property it shall be deemed to have accepted appointment as
trustee.
(2) A nominee company which has not accepted and is not
deemed to have accepted appointment as trustee may disclaim such
appointment within a reasonable period of time after becoming
aware of it by notice in writing to the settlor or to the other trustees.
(3) If the settlor is dead or cannot be found and there are no
other trustees, the trustee to which subsection (2) of this section
applies may apply to the court for relief from the appointment and
the court may make such order as it thinks fit.
Resignation and 
removal of 
trustees.
Amended by:
XX.1994.4.
20. (1) Subject to the provisions of subsection (2) of this
section, a trustee may resign office by notice in writing delivered to
the Centre and to the settlor or, in the absence of the settlor, to at
least one beneficiary; and the resignation shall take effect on the
delivery of the aforesaid notices.
(2) A resignation -
( a ) given in order to facilitate a breach of trust; or
( b ) which would result in there being no trustee, 
shall have no effect:
Provided that a trustee may resign office notwithstanding the
provisions of paragraph ( b ) of this subsection, if, before the
resignation takes effect, application is made to the court for the
appointment of a new trustee and a new trustee has been so
appointed.
(3) A trustee shall cease to be a trustee immediately upon -
( a ) the removal of the trustee by the court; or
( b ) the coming into effect of a provision in the terms of a
trust under which the trustee is removed from office or
otherwise ceases to hold office; or
( c ) steps are taken for the winding up of the nominee
company acting as trustee.
                          TRUSTS g CAP. 331.       9
(4) A trustee ceasing to be a trustee shall concur in executing
all documents necessary for the vesting of the trust property in or
under the control of the new trustee and such obligation of the
person ceasing to be a trustee shall be capable of forced execution
by the court.
Duties of trustees. 
Amended by: 
XIV. 1989.4;
XX.1994.4..
21. (1) Trustees shall in the execution of their duties and the
exercise of their powers and discretions act with the prudence,
diligence and attention of a bonus paterfamilias and observe the
utmost good faith.
(2) Subject to the provisions of this Act, trustees shall carry out
and administer the trust according to its terms; and, subject as
aforesaid, the trustees shall - 
( a ) ensure that the trust property is vested in them or is
under their control;
( b ) so far as reasonable preserve and enhance the value of
the trust property.
(3) Except as permitted by this Act or as expressly provided by
the terms of the trust, a trustee shall not, without the authority of
the court -
( a ) directly or indirectly profit from the trusteeship; or
( b ) cause or permit any other person to profit directly or
indirectly from the trusteeship; or
( c ) on his own account enter into any transaction relating
to the trust property which may result in such profit.
 (4) Trustees shall keep accurate accounts and records of their
trusteeship and shall, upon a request by any beneficiary, provide a
copy of such accounts within a reasonable time.
(5) Trustees shall keep trust property distinct and separate from
their own property as well as from any other property held by them
under any other trust or title, and separately identifiable therefrom.
Co-trustees.
the terms of the trust and except as otherwise provided therein -
( a ) act jointly in the performance of their duties and the
exercise of their powers, unless in urgent cases it is not
possible for any one or more of them so to act;
( b ) not exercise any power or discretion unless all the
trustees are in agreement;
and where the terms of the trust empower the trustees to act by a
majority, a trustee who dissents from a decision of the majority,
shall cause his dissent to be recorded in writing:
Provided that, notwithstanding anything contained in the
terms of the trust, no act of the trustees, and no decision, power or
discretion, done, taken or exercised by them shall be valid or have
effect unless it is done, taken or exercised jointly with, or with the
agreement of, a nominee company acting as one of the trustees of
the trust.
  10      CAP. 331. h                 TRUSTS
Impartiality of 
trustees.
23. Where the trust provides for more than one beneficiary, or
more than one charitable purpose or for at least one beneficiary and
at least one charitable purpose, trustees shall be impartial and shall
not execute the trust for the advantage of one and to the detriment
or at the expense of another, except to the extent that they are so
authorised or required by the terms of the trust.
Powers of trustees.
Amended by:
XX.1994.4.
24. (1) Subject to the terms of the trust and to the provision of
this Act, a trustee shall, in relation to the trust property, have all the
powers of a natural person having the absolute title to such
property.
(2) A trustee shall exercise his powers in the interest of the
beneficiaries and in accordance with the terms of the trust.
Protector. 
Added by: 
XX.1994.4.
24A. (1) The terms of a trust may provide for the office of
protector of the trust.
(2) Subject to the terms of the trust, the protector shall have the
following powers:
( a ) to appoint a new or additional trustee;
( b ) to remove a trustee;
( c ) to require the trustee to obtain his discretion.
(3) In the exercise of his office the protector shall not be
deemed to be a trustee.
Delegation by 
trustees.
25. (1) A trustee may not delegate his powers unless permitted
to do so by this Act, or by the terms of the trust, or by the court.
 (2) Except where the terms of the trust specifically provide to
the contrary, a trustee -
( a ) may delegate management of trust property to and
employ investment managers whom the trustee
reasonably considers competent and qualified to
manage the investment of trust property;
( b ) may employ accountants, advocates, attorneys,
bankers, brokers, custodians, investment advisers,
nominees, property agents, solicitors and other
professional agents or persons to act in relation to any
of the affairs of the trust or to hold any of the trust
property.
(3) A trustee who in good faith and without neglect makes a
delegation or an appointment in accordance with the provisions of
this section, shall not be liable for any loss arising to the trust in
consequence thereof.
(4) A trustee may authorise a person referred to in subsection
(2) of this section to retain any commission or other payment
usually payable in relation to any transaction.
Accumulation, 
advancement or 
appropriation of 
trust property.
26. (1) Where the terms of the trust direct or authorise the
accumulation for a period of all or part of the income of the trust,
the trustee shall distribute the income of the trust which is not
accumulated as required or authorised by the terms of the trust.
                          TRUSTS g CAP. 331.       11
(2) Subject to the terms of the trust, and subject to any prior
interest or charges affecting the trust property, where a beneficiary
is a minor and whether or not his interest is a vested interest or an
interest which will become vested on attaining the age of majority
or a later age or upon the happening of any event, the trustee may -
( a ) accumulate the income attributable to the interest of
such beneficiary pending the attainment of the age of
majority or such later age or the happening of such an
event; or
( b ) apply such income or part of it to or for the
maintenance, education or other benefit of such
beneficiary; or 
( c ) advance or appropriate to or for the benefit of any such
beneficiary such interest or part of such interest.
(3) The receipt given by a parent or the lawful guardian of a
beneficiary who is a minor shall be sufficient discharge to the
trustee for a payment made under subsection (2) of this section.
(4) Subject to the terms of the trust, and subject to any prior
interest or charges affecting the trust property, the trustee may
advance to, or apply for the benefit of, a beneficiary part of the
trust property prior to the date of the happening of the event upon
the happening of which the beneficiary becomes entitled absolutely
thereto.
(5) Subject to the terms of the trust, a trustee may appropriate
trust property in or towards the satisfaction of the interest of a
beneficiary in such manner and in accordance with such valuation
as the trustee may think fit.
(6) Any part of the trust property advanced, applied or
appropriated as aforesaid shall be brought into account in
determining from time to time the share of the beneficiary in the
trust property.
(7) No part of the trust property advanced, applied or
appropriated as provided in this section shall exceed the
presumptive, contingent or vested share of the beneficiary in the
trust property.
Appointment or 
assignment of trust 
property.
Amended by: 
XIV. 1989.5.
27. Where the terms of the trust confer on the trustee or on any
other person power to appoint or assign all or any part of the trust
property or any interest in the trust property to, or to trustees for
the benefit of, any person, such power shall, subject to the terms of
the trust, have effect whether or not such person was a beneficiary
of the trust immediately prior to such appointment or assignment.
Remuneration and 
expenses of 
trustees.
28. (1) Unless authorised by the terms of the trust, or by the
consent in writing of all the beneficiaries or by any order of the
court, a trustee shall not be entitled to remuneration for services
rendered.
(2) A trustee may reimburse himself or pay out of the trust all
expenses properly incurred by him in connection with the trust.
  12      CAP. 331. h                 TRUSTS
Confidentiality 
relating to trusts.
29. (1) Subject to the terms of the trust and to any order of the
court given for special reasons, a trustee or any other person shall
not be required to disclose to any person any document or
information which -
( a ) discloses the trustee’s deliberations as to the manner in
which a power or discretion was exercised, or a duty
conferred or imposed by law or by the terms of the
trust was performed;
( b ) discloses the reason for any particular exercise of such
power or discretion or performance of duty or the
material upon which such reason will be or might have
been based;
( c ) relates to the exercise or proposed exercise of such
power or discretion or the performance or proposed
performance of such duty;
( d ) relates to or forms part of the accounts of the trust: 
Provided that where the request is for the
disclosure of any document or information relating to
or forming part of the accounts of the trust and is made
by a beneficiary under the trust or, in the case of a
charity, by a charity referred to by name in the trust
instrument as a beneficiary under the trust, the trustee
shall be obliged to disclose the document or other
information requested.
(2) Save as is required, permitted or otherwise provided by this
Act, or by the terms of the trust or as may be necessary for the
purposes of the trust, and notwithstanding the provisions of any
other law -
( a ) every trustee and every other person shall at all times
regard and deal with all documents and information
relating to a trust as secret and confidential;
( b ) no trustee or other person shall at any time be required
to produce to or before any court, tribunal, Board,
committee of inquiry or any other authority or to
divulge to any such authority any matter or thing
coming to his notice or being in his possession for any
reason whatsoever, where such matter or thing relates
to a trust.
(3) Any trustee or other person who, except as is required,
permitted or otherwise provided by this Act, or by the terms of the
trust, at any time communicates or attempts to communicate any
matter or thing relating to a trust to any person whatsoever - 
( a ) shall be guilty of an offence and shall be liable, on
conviction, to a fine ( multa ) of not less than one
thousand and not more than five thousand liri, or to
imprisonment for a term not exceeding two years, or to
both such fine ( multa ) and imprisonment; or
( b ) shall pay into the trust a penalty of not less than three
hundred and not more than ten thousand liri, or such
                          TRUSTS g CAP. 331.       13
higher amount if the damages sustained exceed that
sum, as the court convicting such person as aforesaid
may determine and order; such sum being recoverable
as a civil debt, the order of the court being an
executive title by virtue of this subsection for the
purposes of such recovery.
Liability for breach 
of trust. 
Amended by: 
XX.1994.4.
30. (1) A trustee committing or concurring in a breach of trust
shall without prejudice to any other liability be liable for - 
( a ) the loss of depreciation in value of the trust property
resulting from the breach;
( b ) the profit, if any, which would have accrued to the
trust if there had been no such breach.
(2) A trustee may not set off a gain from a breach of trust
against a loss from the same or some other breach of trust.
(3) A trustee shall not be liable for a breach of trust committed
prior to his appointment, if such breach of trust was committed by
some other person. It shall, however, be the duty of the trustee on
becoming aware of it to take all reasonable steps to have such
breach remedied.
(4) A trustee shall not be liable for breach of trust committed
by a co-trustee unless - 
( a ) he becomes aware or ought to have become aware of
the commission of such breach or the intention of the
co-trustee to commit a breach of trust; and
( b ) he actively conceals such breach or such intention or
fails within a reasonable time to take proper steps to
protect or restore the trust property or prevent such
breach.
(5) Nothing in the terms of a trust shall relieve, release or
exonerate a trustee from liability for breach of trust arising from his
own fraud, wilful misconduct or gross negligence.
(6) Where two or more trustees are liable in respect of a breach
of trust, their liability shall be joint and several.
(7) A beneficiary may, in respect of a liability to him for a
breach of trust already committed, relieve a trustee of, or indemnify
him against, such liability, but only if the beneficiary - 
( a ) has legal capacity; and
( b ) has full knowledge of all material facts; and
( c ) has not been improperly induced by the trustee to give
the relief or indemnity.
(8) The court may relieve the trustee either wholly or in part
from liability for a breach of trust where it is satisfied that the
trustee has acted honestly and reasonably and ought in fairness to
be excused in the circumstances.
Trustees acting in 
respect of more 
than one trust.
31. (1) A trustee acting for the purposes of more than one trust
shall not, in the absence of fraud, be affected by notice of any
  14      CAP. 331. h                 TRUSTS
instrument, matter, fact or thing in relation to any particular trust if
the trustee has obtained notice of it by reason of acting or having
acted for the purposes of another trust.
(2) A trustee of a trust shall disclose to any co-trustee any
interest which he has as trustee of another trust if any transaction in
relation to the first mentioned trust is to be entered into with the
trustee of such other trust.
Dealings with third 
parties.
Amended by:
XX.1994.4.
32. (1) Where in any transaction or matter affecting a trust a
trustee informs a third party that he is acting as trustee, a claim by
such third party in relation thereto shall extend only to the trust
property.
(2) Where in any such transaction or matter a trustee fails to
inform a third party that he is acting as trustee, and that party is
otherwise unaware of it, the trustee - 
( a ) shall be personally liable to such third party in respect
thereof; and
( b ) shall have a right of recourse to the trust property by
way of indemnity against such liability, unless the
trustee acted in breach of trust.
(3) In this section "third party" means any person not being a
settlor, a trustee or a beneficiary of the trust.
Constructive 
trustees.
33. (1) Subject to the provisions of subsection (2) of this
section, where a person (in this section referred to as a
"constructive trustee") makes or receives any profit, gain or
advantage from breach of trust he shall be deemed to be a trustee of
that profit, gain or advantage; and the beneficiary of such trust shall
be deemed to be the trust, or the beneficiary, or other person, to the
detriment of whom or at the expense of whom the profit, gain or
advantage was made.
(2) Subsection (1) of this section shall not apply to a person
acquiring property under an onerous title in good faith.
(3) A person who is or becomes a constructive trustee shall
deliver up the property to or in favour of the beneficiaries thereof.
Position of 
outgoing trustee. 
Amended by: 
XX.1994.4.
34. (1) A trustee who resigns or is removed or otherwise
ceases to be a trustee shall duly surrender trust property in his
possession or control.
(2) A trustee who resigns or is removed or otherwise ceases to
be a trustee and has complied with the requirements of subsection
(1) of this section shall be released from liability to any
beneficiary, trustee or person interested under the trust for any act
or omission in relation to the trust property or his duty as a trustee,
except in respect of actions arising from breach of trust to which
such trustee was a party or to which he was privy.
(3) A trustee who resigns or is removed or otherwise ceases to
be a trustee shall continue to be liable to any beneficiary, trustee or
person interested under the trust for the recovery from such trustee
of trust property or the proceeds of trust property in the possession
                          TRUSTS g CAP. 331.       15
of the trustee or converted to the trustee’s own use or not
surrendered as required by subsection (1) of this section.
MISCELLANEOUS PROVISIONS REGARDING TRUSTS
Class interest.
shall apply where a trust, or an interest under a trust, is in favour of
a class of persons:
( a ) a class closes when it is no longer possible for any
other person to become a member of a class;
( b ) a woman who is over the age of fifty-five years shall
be deemed to be no longer capable of bearing a child;
( c ) where any class interest relates to income and for any
period there is no member of the class in existence, the
income shall be accumulated and, subject to section 12
of this Act, shall be retained until there is a member of
the class in existence or the class closes.
(2) In this section "class interest" means a trust or an interest
under a trust which is in favour of a class of persons.
Variation of terms 
of trust by the court 
and approval of 
particular 
transactions.
36. (1) Subject to the provisions of subsection (2) of this
section, the court may, if it thinks fit, by order approve on behalf
of-
( a ) any person incapacitated at law having directly or
indirectly, an interest, whether vested or contingent,
under the trust; or
( b ) any person, whether ascertained or not, who may
become entitled, directly or indirectly, to an interest
under the trust as being at a future date or on the
happening of a future event a person of any specified
description or a member of any specified class of
persons; or
( c ) any person unborn; or
( d ) any person in respect of any interest of his that may
arise to him by reason of any discretionary power
given to any one on the failure or determination of any
existing interest that has not failed or determined,
any arrangement, by whomsoever proposed and whether or not
there is any other person beneficially interested who is capable of
assenting thereto, varying or revoking all or any of the terms of the
trust or enlarging the powers of the trustees of managing or
administering any of the trust property.
(2) The court shall not approve an arrangement on behalf of
any person coming within paragraphs ( a ),   ( b )   or ( c ) of subsection
(1) of this section, unless it is satisfied that the carrying out of such
arrangement appears to be for the benefit of that person.
(3) Where in the management or administration of a trust, any
sale, lease, pledge, charge, surrender, release or other disposition,
  16      CAP. 331. h                 TRUSTS
or any purchase, investment, acquisition, expenditure or other
transaction is in the opinion of the court expedient but the same
cannot be effected by reason of the absence of any power for that
purpose vested in the trustee by the terms of the trust or by law, the
court may confer on the trustee, either generally or in any particular
circumstance, a power for that purpose on such terms and subject to
such provisions and conditions, if any, as it thinks fit, and may
direct in what manner and from what property any money
authorised to be expended, and the costs of any transaction, are to
be borne.
(4) An application to the court under this section may be made
by the trustee or by any beneficiary.
Other powers of 
the court.  Amended 
by: 
XIV. 1989.6.
37. (1) A trustee may apply to the court for directives
concerning the manner in which he may or should act in connection
with any matter concerning the trust; and the court may make such
order, if any, as it thinks fit.
(2) The court may also, if it thinks fit -
( a ) make an order concerning - 
(i) the execution or the administration of any trust;
or
(ii) the trustee of any trust, including an order
relating to the exercise of any power, discretion
or duty of the trustee, the appointment or
removal of a trustee, the remuneration of a
trustee, the submission of accounts, the conduct
of the trustee and any payments into court; or
(iii) any beneficiary or any person having any
connection with the trust;
( b ) make a declaration as to the validity or enforceability
of a trust;
( c ) rescind or vary any order or declaration made under
this Act, or make any new or further order or
declaration.
(3) An application to the court for an order or declaration under
subsection (2) of this section may be made by the trustee or by any
beneficiary or by the Attorney General.
(4) Where the court makes an order for the appointment of a
trustee it may impose such conditions as it thinks fit, including
conditions as to the vesting of trust property.
(5) Subject to any order of the court, a trustee appointed by the
court under this section shall have the same powers, discretions and
duties as if he had been originally appointed a trustee.
Powers of the court 
for the execution of 
its orders and of 
instruments 
ordered by it. 
Amended by: 
XIV. 1989.7.
38. (1) In the exercise of its functions under this Act the court
shall have all the powers of the Civil Court, First Hall, and, without
prejudice to the generality of the aforesaid, any order or direction
of the court may be carried into execution as if it were a judgment
of the said First Hall and shall not be subject to be set aside by the
said First Hall but shall be subject to be appealed from as if they
                          TRUSTS g CAP. 331.       17
were judgments of that Hall.
(2) Without prejudice to any other power given to the court by
virtue of the foregoing provisions of this section or of any other
law, where a trustee neglects or refuses to perform any duty or to
comply with any order of the court, the court may, on such terms
and conditions it may deem appropriate, order that the required
action be executed, made or done by such person as the court may
appoint for the purpose, at the cost of the trustee in default, or
otherwise as the court may direct; and anything so executed, made
or done shall operate and have effect for all purposes as if it had
been executed, made or done by the trustee.
Payment of costs.
to the court under this Act shall be paid out of the trust property or
be borne and paid in such other manner or by such other person as
the court may order.
Protection of 
persons dealing 
with trustees.
40. (1) A person acquiring trust property from a trustee in
good faith and under an onerous title acquires a good title thereto as
if he had acquired it from the person having the absolute title
thereto and shall not be affected by the trusts on which the said
property is held.
(2) No person paying or advancing money to a trustee shall be
concerned to see that such money is required for the purposes of the
trust, or that no more than is required is raised, or otherwise as to
the propriety of the transaction or the application of the money.
Following trust 
property and 
bankruptcy of 
trustee. 
Added by: 
XX.1994.4.
40A. (1)  Without prejudice to the personal liability of a
trustee, trust property which has been alienated or dealt with in
breach of trust, or the property into which it has been converted,
may be followed and recovered unless it is in the hands of a  bona
fide  purchaser for value without notice of the breach of trust.
(2) Where a trustee becomes bankrupt, or insolvent, or upon his
property becoming liable to seizure or similar process of law, his
creditors shall have no right or claim against the trust property
except to the extent that the trustee himself has a claim against the
trust.
(3) The court may make an order or directive as it deems fit in
the circumstances of the case upon an application made under this
section by any beneficiary or creditor as the case may be. 
Limitation of 
action.
41. (1) An action brought against a trustee - 
( a ) in respect of any fraud to which the trustee was a party
or to which he was privy; or
( b ) for the recovery from the trustee of trust property in
his possession or control or previously received by the
trustee and converted to his use,
shall not be barred by prescription except by the lapse of thirty
years.
(2) Without prejudice to the provisions of subsection (1) of this
section, no action may be brought against a trustee by a beneficiary
  18      CAP. 331. h                 TRUSTS
for breach of trust after the lapse of three years - 
( a ) commencing from the date of the delivery of the final
accounts of the trust to the beneficiary; or
( b ) commencing from the date on which the beneficiary
first had knowledge of the occurrence of the breach of
trust,
whichever is the earlier date.
(3) Where the beneficiary is a minor the periods referred to in
this section shall not begin to run until the day on which the
beneficiary ceases to be a minor.
(4) The periods mentioned in this section shall be interrupted if
a judicial act or demand is filed in the competent court and served
on the trustee before the expiration of the said period.
Duties in respect of 
certain illegal 
activities. 
Amended by: 
XX.1994.4.
42. (1) Where any person, being a director, officer or member
of a nominee company for the time being acting as a trustee of
trust, has reason to believe that the said trust has property or has
income accruing to it or derived by it and originating from a
transaction, operation or other activity which is a criminal offence
under the laws of Malta or which, had it been carried out in Malta,
would have been such an offence, or has received or comprises or
has in its possession or control money or other property the receipt,
ownership or control of which is or would be an offence as
aforesaid, it shall be the duty of such person to bring the matter to
the notice of the Centre.
(2) Any person who without reasonable excuse fails to comply
with the requirements of subsection (1) of this section shall be
guilty of an offence and shall be liable, on conviction, to a fine
( multa ) of not less than two thousand and not more than ten
thousand liri or to a term of imprisonment not exceeding five years,
or to both such fine and imprisonment.
(3) A person convicted of an offence under this section shall be
permanently disqualified from being an officer or member of a
nominee company.
(4) All moneys or property described in subsection (1) of this
section shall be forfeited in favour of the Government and become
its property absolutely.
REGISTRATION OF TRUSTS
Registration of 
trusts and 
attestation of 
trustees. 
Amended by: 
XX.1994.4.
43. (1) Every trust shall be registered with the Centre.
(2) It shall be the responsibility of the trustee to ascertain that a
trust is registered under this Act.
(3) Registration shall be effected by filing with the Centre: 
( a ) a certified copy of the trust instrument;
( b ) a declaration by the nominee company acting as
trustee of the trust that the trust satisfies the conditions
                          TRUSTS g CAP. 331.       19
of this Act in order that it may be a trust.
 (4) The Centre, on being satisfied that the requirements of
paragraphs ( a )   and   ( b )   of subsection (3) of this section have been
complied with and that the appropriate fee has been paid, shall
register the trust and issue a certificate of registration accordingly.
(5) Any subsequent change in the trust instrument shall
likewise be registered with the Centre and shall not have effect in
Malta until it is so registered. Any such change shall be registered
by the trustee, irrespective of the origin of, or the person making
the change.
(6) The trustee shall likewise give notice to the Centre of the
termination of the trust, irrespective of the cause or reason of such
termination.
(7) At the request of the trustee of a trust, and on adequate
proof being given to the satisfaction of the Centre, the Centre may
issue a certificate stating that, to the best of its knowledge, on the
date of the certificate, the applicant was the trustee of the trust. A
certificate under this subsection shall be issued on the payment of a
fee of fifteen liri or such higher amount as the Centre may from
time to time determine.
(8) The Centre shall keep a register of all trusts registered with
it under this section and shall enter therein any change relative to
them notified to it and such other matters it may deem appropriate
to register.
(9) The fee payable for the registration of a trust shall be two
hundred liri.
(10) A trust shall cease to be entitled to the exemptions, benefits
or other privileges of a trust if the tax due each year under section
44 of this Act is not paid within three months from the due date.
Optional 
registration of 
foreign trusts. 
Added by: 
XX.1994.4.
43A. (1) A foreign trust which satisfies the conditions of
subsection (2) of section 6 may register with the Centre.
(2) Registration shall be effected by filing with the Centre:
( a ) a certified copy of the trust instrument; and
( b ) a declaration by the licensed nominee acting as a
trustee of the foreign trust that the trust satisfies the
conditions of subsection (2) of section 6 of this Act.
(3) The Centre, on being satisfied that the requirements of
subsection (2) of section 6 of this Act are satisfied and that the
appropriate fee has been paid, shall register the foreign trust and
issue a certificate of registration accordingly.
(4) Any subsequent change in the trust instrument shall
likewise be registered with the Centre.
(5) The trustee being a licensed nominee shall likewise give
notice to the Centre of the termination of the trust, irrespective of
the cause or reason of such termination.
(6) At the request of a trustee (being a licensed nominee) of a
foreign trust registered under this section, and on adequate proof
  20      CAP. 331. h                 TRUSTS
being given to the satisfaction of the Centre, the Centre may issue a
certificate stating that, to the best of its knowledge, on the date of
the certificate, the applicant was a trustee of the trust. A certificate
under this subsection shall be issued on the payment of a fee of
twenty five liri or such higher amount as the Centre may from time
to time determine.
(7) The Centre shall keep a register of all foreign trusts
registered under this section and shall enter therein any change
relative to them notified to it and such other matters as it may deem
appropriate to register.
(8) The fee payable for registration shall be two hundred liri.
(9) A trustee (being a licensed nominee) of a foreign trust may
by notice in writing request the Centre to cancel the registration of
the trust under this section and upon receipt of such request, the
Centre shall cancel such registration.
Cap. 374.
(10) Nothing in this Act shall be deemed to make registration of
a foreign trust a condition of recognition under the Recognition of
Trusts Act.
(11) For the purposes of this Act, "licensed nominee" refers to a
licensed nominee company established in terms of section 51A of
the Act.
FISCAL AND OTHER EXEMPTIONS
Exemption from 
taxation. 
Amended by: 
XIV.1989.8; 
XX.1994.4.  
Cap.123.
44. (1) The tax chargeable under the Income Tax Act, or
under any enactment replacing that law, on the income of a trust
and on any income of a beneficiary arising from such trust, shall be
in respect of all such income, two hundred liri for each year of
assessment, and shall be payable by the trust to the Centre on
behalf of the Commissioner of Inland Revenue not later than the
end of January of each year following that of the registration of the
trust.
Cap. 239. (2) No duty shall be chargeable under the Death and Donation
Duty Act * , or under any enactment replacing that law -
( a ) in respect of any asset held under a trust;
( b ) by any person in respect of his interest as a beneficiary
under a trust.
Cap. 294.  (3) No duty shall be chargeable under the Duty on Documents
Act † , or under any enactment replacing that law, in respect of any
document concerning a trust.
(4) Any property held under a trust shall be exempt from
customs duty when imported into Malta:
Provided that duty shall be payable on any property imported
free of duty under this subsection if and when such property is sold,
*Repealed by Act XVI of 1993.
†Repealed by Act XVII of 1993.
                          TRUSTS g CAP. 331.       21
assigned or otherwise transferred to any person resident in Malta.
Exemption from 
exchange control. 
Amended by: 
XX.1994.4. 
Cap.233.
45. The Exchange Control Act, and any enactment replacing
that law, shall not apply to any transaction or operation concerning
or relating to trusts or any property held thereunder:
Provided that the foregoing provisions of this section shall
not apply to transactions or operations carried out with persons
resident in Malta.
Declaration in lieu 
of tax returns. 
Amended by: 
XIV.1989.9. 
Cap. 123.
46. (1) Where a declaration in the form set out in the Schedule
to this Act has been submitted to the Commissioner of Inland
Revenue by a nominee company in respect of the trust of which it is
a trustee, neither the trust nor a trustee nor any other person having
an interest in the trust shall be required to make or furnish any
return, information or other details that could be due or otherwise
be lawfully required to be made or furnished for any purpose of the
Income Tax Act, in relation to that trust.
(2) Where property is by this Act exempt from duty payable
under the Death and Donation Duty Act * , no return of the said
property shall be required to be made under the said Act nor of the
relative chargeable transmission, if the transmission comprises no
other property; and where the transmission comprises other
property the return may be limited to the property liable to duty.
Application to 
foreign trusts. 
Added by: 
XX.1994.4.
 46A.   A foreign trust which is registered pursuant to section
43A may, by accomplishing the formalities prescribed by section
46, qualify for the fiscal and other exemptions provided by sections
44 and 45 and the guarantee provided by section 50 as though it
were a trust validly created under this Act.
NOMINEE COMPANIES
Nominee 
companies and 
conditions for the 
formation thereof. 
Amended by: 
XIV.1989.10; 
XX.1994.4.
47. (1) A company formed for the purposes of acting as
trustee of trusts or for such purpose and for the purpose of
performing the functions of a nominee company with respect to
offshore companies as provided in the Act, and satisfying, subject
to the provisions of subsections (3) and (4) of this section, all the
conditions set out in subsection (2) of section 42 of the Act and
otherwise qualified to be granted a warrant to function as a
nominee company under section 43 of the Act, shall also qualify to
be a nominee company for the purposes of this Act and the
provisions of the Act for the grant of a warrant to a nominee
company shall apply to such company as they apply to a nominee
company under the Act.
(2) A nominee company may not function as trustee, and shall
not be treated as such for the purposes of this Act, unless it is in
possession of a warrant issued by the Centre, and currently in force,
authorising it to function as such for the purposes of this Act.
*Repealed by Act XVI of 1993.
  22      CAP. 331. h                 TRUSTS
(3) All the provisions of the Act relating to nominee companies
shall apply to a company which is granted a warrant to function as a
nominee company for the purposes of this Act, or for the purposes
of this Act and of the Act, as the case may be, subject to such
modifications and adaptations as may be necessary to apply the
aforesaid provisions of the Act to nominee companies acting as
trustees of trust; and in particular, but without prejudice to the
generality of the aforesaid, references in the Act to the Act itself
shall be construed as references to this Act, references to offshore
companies shall be construed as references to trust and references
to directors or secretaries of offshore companies or to their duties
shall be construed as references to trustees or to their duties.
(4) The provisions of this subsection referred to in subsection
(1) of this section are:
( a ) paragraph ( b ) of subsection (2) of section 42 of the Act
shall be construed as requiring the objects of the
company to be limited expressly to carrying out the
functions of a trustee of trusts, and to matters ancillary
or incidental thereto, or to such functions and the
functions of a nominee company with respect to
offshore companies;
( b ) in the case of a company formed exclusively to act as a
trustee of trusts -
(i) the percentage referred to in paragraph ( e ) of
subsection (2) of section 42 of the Act shall be
sixty; and
(ii) the Centre may, in exceptional cases and for
special reasons, allow a person not resident in
Malta to own or hold all the shares in the
company.
Trusts to be 
registered through 
nominee company. 
Amended by: 
XIV.1989.11; 
XX.1994.4.
48. Without prejudice to the generality of the provisions of
subsection (2) of section 47 of this Act, no trust shall be registered
by the Centre except through the agency of a nominee company
authorised to act as a trustee of trusts and a trust shall at all times
have a nominee company as one of its trustees.
GENERAL PROVISIONS
Power to make 
regulations or 
rules. 
Amended by: 
XX.1994.4.
49. (1) The Minister may, on the advice of the Centre make
regulations or rules for the better carrying out of any of the
provisions of this Act, and may, in particular, but without prejudice
to the generality of the foregoing, by any such regulations or rules - 
( a ) provide for the returns, statements, and notices to be
made or given for any of the purposes of this Act, and
the form and contents thereof;
( b ) regulate the conduct, duties and other obligations of
nominee companies, including the returns, statements
and other information they are to submit to the Centre,
                          TRUSTS g CAP. 331.       23
and establish the maximum amount which,
notwithstanding any provision of this Act, may be
charged as fees by such companies;
( c ) alter any fees established by any provision of this Act,
and amend any such provision accordingly to reflect
changes in the cost of living or in the value of
currencies, and establish such other fees as may be
deemed appropriate in respect of any matter for which
a fee is not provided by this Act:
Provided that no alteration of any fees shall have
effect before the expiration of one year from the
publication of such alteration in the Gazette;
Cap. 12.
( d ) make rules of court for any purpose of this Act and of
proceedings thereunder, providing by such rules for
any matter referred to in section 29 of the Code of
Organization and Civil Procedure;
( e ) prescribe any matter that may or is to be prescribed.
(2) Regulations and rules made under any of the provisions of
this Act may be made in the English language only.
Guarantee of 
exemptions.
Amended by:
XX.1994.4.
50. (1) The registration of a trust under this Act shall
constitute a contract between the Government and the trust
guaranteeing the rights and exemptions and other privileges due as
provided by this Act, subject only to the due observance of all the
provisions of this Act.
(2) The guarantee given by subsection (1) of this section shall
apply also against retrospective action, whether by legislation or
otherwise, as would nullify any rights, exemptions or privileges so
guaranteed.
(3) The guarantee granted by subsection (1) of this section
shall be for a period of ten years from the registration of the trust.
Criminal 
proceedings. 
Amended by: 
XIV.1989.12. 
51. (1) No proceedings for an offence under this Act shall be
commenced without the sanction of the Attorney General.
(2) The provisions of this Act shall not affect any criminal
proceedings that may be competent under any other law.
(3) Where in respect of any offence against any of the
provisions of this Act, the act or omission constituting the offence
can be attributed directly to a person or persons clearly identifiable,
and such person or persons are convicted of that offence, the court
shall not be required to convict also any other person if it is
satisfied that such person had no part in the offence and that by
reason of his behaviour or other circumstances he deserves not to
be convicted.
Application of 
certain provisions 
of the Act.
Amended by:
XX. 1994.4.
52. The provisions of the Act relating to the Centre and in
particular, but without prejudice to the generality of the aforesaid,
the provisions of sections 4, 5, 10, 11 and 12 of the Act, shall apply
to and with respect to trusts, and otherwise for the purposes of this
Act, as they apply to and with respect to offshore companies and
  24      CAP. 331. h                 TRUSTS
otherwise for the purposes of the Act, and shall so apply subject to
such modifications and adaptations as may be necessary for the
purposes aforesaid.
Existing offshore 
trusts. 
Added by: 
XX.1994.4.
Cap. 374.
53.   An offshore trust, the proper law of which is not the law of
Malta, and existing at the date of entry into force of the
Recognition of Trusts Act, shall, as from such date, be
automatically re-registered by the Centre as a foreign trust under
section 43A and from such date such trust shall be governed by
section 43A and not by section 43 except that the guarantee
provided by section 50 shall continue to be determined by reference
to the date of registration of the trust under section 43.
                          TRUSTS g CAP. 331.       25
Amended by: 
XIV.1989.13; 
XX.1994.4.
SCHEDULE
gS E C T I O N  46h
Declaration in lieu of Tax Return 
in respect of a Trust
Cap. 123.
Declaration by the Trustee of a trust in lieu of a Return of Income 
and Capital Asset under the Income Tax Act
Year of Assessment ..................
Cap. 331.
We ............................................ and ....................................
two of the directors of ....................................................................
the nominee company acting as the trustee of .................................
.......................................................................................................
a trust registered under the Trusts Act (hereinafter referred to as
"the Act") do solemnly and sincerely declare that we have
ascertained to the best of our ability that the said trust satisfies all
the conditions required by the Act in order that it may remain a
trust and have the income referred to in subsection (1) of section 44
of the Act chargeable to tax as provided in that section, and that
accordingly:
( a ) the income of the said trust and that of its beneficiaries
arising from the said trust, are chargeable to income
tax for the year of assessment ....... as provided in the
section aforesaid;
( b ) the settlor and the beneficiaries of the trust are
qualified to be the settlor and beneficiaries,
respectively, in terms of the Act and the trust property
does not include any immovable property situated in
Malta;
( c ) the trust of which the said nominee company is the
trustee does not stand to lose any rights, exemptions
and other privileges granted by the Act for any reason
whatsoever.
We make this declaration in full knowledge of the penalties
established by the Act for incorrect or false declaration.
Signature  .................................................................... 
Name in full   .................................................................... 
I.D. Card No.  .................................................................... 
Profession   .................................................................... 
Addresses  .................................................................... 
 .................................................................... 
Dated  .................................................................... 
