Definition
The trust is a legal structure originating from common law whereby a person, the settlor, transfers ownership of assets to a trustee. The trustee undertakes to administer and manage them in the interest of one or more designated beneficiaries, according to the terms set out in the trust's constitutive document (trust deed). The trust does not constitute a separate legal person: it rests on a relationship of trust and on fiduciary obligations binding the settlor, the trustee, and the beneficiaries throughout the life of the structure.
Framework in Mauritius
Mauritius recognises the trust within its legal system and offers this vehicle to both residents and non-residents, within the broader context of its international financial centre. Where the activity of trustee is carried out on a professional basis, it falls under the supervision of the Financial Services Commission (FSC), the regulator of non-bank financial services in Mauritius. In practice, the administration of a trust is most often entrusted to a management company licensed by the FSC, which acts as professional trustee or assists an individual trustee in meeting their legal and compliance obligations.
In practice
The trust is used for a variety of purposes: intergenerational wealth transfer, asset protection, estate planning, or holding interests in other structures. The choice of trustee is decisive, as it bears legal responsibility for managing the assets and must act in accordance with the trust deed, exclusively in the interest of the beneficiaries. Before resorting to a trust, careful consideration should be given to the drafting of the trust deed, the precise identification of the beneficiaries, and the applicable compliance obligations, in particular Know Your Customer and Anti-Money Laundering requirements. As each situation must be assessed case by case, according to the individual circumstances of the settlor and beneficiaries, prior analysis with qualified advisers is recommended before setting up a trust in Mauritius.
Related terms
The trust is often compared to the Mauritian foundation, another wealth management and protection structure, which is endowed with legal personality. Its administration also fits within the ecosystem of management companies licensed by the FSC, which likewise act in the administration of Global Business Companies and Authorised Companies. Finally, Know Your Customer (KYC) and Anti-Money Laundering (AML) obligations fully apply to the establishment and operation of a trust, whatever the nature of the assets concerned.