-
The Hague Trusts
Convention
Malta
has recently enacted the Recognition of Trusts Act. This law, which
came into force on the 23rd September, 1994, was enacted with a view to
enabling Malta adopt the Hague Convention on the Law applicable to Trusts
and on their Recognition as an integral part of its legal system.
Malta acceded to the Hague Trusts Convention on 31 December 1995.
The adoption of the Convention will provide the legal mechanism whereby
the Maltese Courts would be in a position to recognise the validity of
trusts adopting the law of a foreign jurisdiction as the proper law by
which they are governed.
It
is relevant to point out that Malta did not incorporate Article 13 of the
Hague Convention which is an escape clause in favour of States that do
not have trusts. Under the provisions of this Article, the courts
of Contracting States are not bound to recognise trusts whose significant
elements, particularly the habitual residence of the settlor and beneficiaries
and the situs of the assets ,are more closely connected with States which
do not have the institution of the trust.
Furthermore,
whilst adopting the provisions of Article 15 of the Convention relating
to the domestic mandatory rules that will apply in matters relating, inter
alia, to matrimonial and succession rules 7 the Recognition of Trusts Act
provides that:
persons not domiciled
in Malta who, during their lifetime, transfer movable property to a trust,
shall be deemed to have had capacity to do so and no rule relating to inheritance
or succession, including forced heirship, legitim or similar rights, to
such movable property of the law of their domicile or of any system of
foreign law applicable under Maltese conflicts rules shall affect the recognition
of such trust by the courts of Malta.
|
Trusts in Malta
