A trust is a fiduciary relationship whereby the Settlor gives to the Trustee the right to ownership of assets for the benefit of the Beneficiary / Beneficiaries. Trusts are governed by the Trusts Act 2001 in Mauritius and can be of the following types:

• Protective or spendthrift trusts
• Charitable trusts
• Purpose trusts
• Discretionary trusts

There is a requirement to appoint a qualified Trustee licensed by the Financial Services Commission, such as AAA, and depending upon the type of the trust, there may be requirements to appoint an Enforcer and a successor to an Enforcer. The terms of the trust may also provide for the appointment of a Protector.

The advantages of using a trust are numerous and include privacy, asset protection and estate planning.

The law permits a Private Trust Company (PTC) to act as the Trustee of a trust or trusts which has or have been set up for the benefit of:

• a single family; or
• different branches of a family; or
• distinct (but related) family groups.