The Trust vs. The Foundation

Most people have heard of the trust and the foundation which are available to private individuals in Malta. However, not all are familiar with what these two institutes have to offer. I feel that once the main characteristics of these two vehicles are understood, they would be used more confidently and the possibilities offered would be endless.

The trust is a relationship created through a private writing, where a trustee holds and controls assets for the benefit of beneficiaries. The trustee is usually a firm or company engaged professionally and customarily in the business of trustee services and in managing assets which are legally under the ownership of said trustee, but subject to the provisions of the trust Instrument. On the other hand, a foundation is an organisation. It can be regarded as an autonomous legal entity which belongs to itself. It has characteristics of a company however it acts more like a trust. The Maltese foundation obtains separate