Trusts displacing wills : a Maltese perspective

Abstract

The aim of this thesis is to understand the institute of trusts and the institute of succession, more specifically of wills, and whether the institute of trust can be used as a more effective method of transfer of property then wills. The first part of the thesis is dedicated to understand what is a trust and especially understanding the birth of such institute into the Maltese legislation and how it is compatible with our jurisdiction since trusts were developed under common law. Furthermore an analysis of the characteristics of trusts and the characteristics of civil institutes which are similar to trust is given also in chapter one or this thesis. Through this chapter one, can understand that in fact the institute of trust is not so much alien to our civil jurisdiction as one may think, because although both institutes are not the same one may find similarities in both institutes. In Chapter two the law of succession is discussed, thus allows the reader to understand the concept behind a will and also understand succession in the form of intestate succession. Furthermore under this chapter, I have discussed the reserved portion granted by the law to the surviving spouse children and other descendants which shows that the law is created to ensure that the welfare of the family of the deceased is also provlded for after the death of the deceased. A discussion on how the trust Is constituted and the different types of trusts especially testamentary trusts is provided for in Chapter three, which helps us to understand that there are different trusts which are able to accommodate the needs of the settler whenever he decides to create a trust. Finally an understanding of the taxation of trusts is given in the fourth chapter. The difference between both institutes and the advantages both institutes can provide for those creating such instruments is given in the final chapter of the thesis. Thus givino the reader the tools to decide which better institute is suited for his needs.