The introduction of trusts in the Maltese Civil Code : its effects and implications

Abstract

The introduction of a new concept in any legal system brings about inevitable consequences and effects on the previous legal framework. Following Act XIII of 2004, the Maltese Civil Code has been modified to accommodate a new concept, trusts. This dissertation will not, however, analyse the compatibility or otherwise of the trust with the Maltese Civil Law system, since such an exercise would be futile and has somewhat been exhausted. Consequently, this dissertation will study the effect of this new concept on the Civil Code whilst at the same time making reference to the concept of trusts as portrayed in the Trusts and Trustees Act. Such an exercise would however be impossible without a comparison to other legal vehicles which were already present in the Maltese legal system. Furthermore, constant reference will be made to other Civil Law countries which have incorporated the trust in their legal system so as to understand and appreciate fully the nature of what has been called "a common-law institution in a civilian context."1 Reference to foreign sources will be essential so as to supplement the lack of local jurisprudence and theory on the subject. Moreover, each chapter will explore different facets of the effects the trust has brought about in the Civil Code. Given that such a task is extremely vast this dissertation is not attempting to be exhaustive but is merely intended to iay down the basis of the topics at hand whilst at times analysing the law through a critical lens.