Trusts and foundations are often thought of or addressed
together, most likely because they are both used by practitioners
for asset protection purposes, and also possibly because of their
similarities when it comes to their administration.
However, trusts and foundations couldn't be more different,
especially to the trained professional, and this article will
explain why.
What is a trust?
Under Maltese law, trusts are regulated by the Trusts and
Trustees Act ("TTA"), Chapter 331 of the Laws of Malta.
Article 3 of the TTA defines a trust as the holding of property by
a person, known as the trustee, for the benefit of persons, known
as beneficiaries.
In other words, the trustee must hold
property (in trust) for the benefit of beneficiaries, otherwise,
there is (quite literally) no trust.
