Choosing the appropriate type of trustee in Malta

Abstract

A trust exists where a trustee is vested with ownership of a property to administer it as provided in the trust instrument and for the benefit of beneficiaries. There are different types of trustees which can be appointed to administer a trust, which appointment is contingent on the different considerations which a settlor is to take into account. Chapter 1 provides a general overview of the trusteeship. Therein, it will discuss, inter alia, who is eligible to act as a trustee, how the trustee is appointed, the acceptance or refusal of a trusteeship by a prospective trustee and the grounds for a trustee’s removal. Chapter 2 thoroughly examines the different types of trustees in Malta. Chapter 3 analyses the different factors which a settlor should take into consideration when determining the type of trustee he or she is to appoint to administer his trust. Chapter 4 examines the extent of liability of professional trustees and private trustees and whether the level of liability differs from one another. The conclusion reached is that there is no clear-cut answer as to which type of trustee the settlor is to appoint to administer his trust. Every kind of trustee has its benefits. Accordingly, it is concluded that the appointment of the type of trustee depends on the particular circumstances of each situation.