OVERVIEW TRUST LAWS SEYCHELLES
The International Trusts Act 1994 provides for trust relationships in Seychelles. A trust is a kind of relationship whereby the owner of a property, referred to as the Settlor, transfers ownership of this property to another person referred to as the Trustee, for the benefit of a third person, known as the Beneficiary. The property subjected to the trust is then managed and administered by the Trustee in accordance with the terms of a trust deed on behalf of the beneficiary.
How is a Trust created?
A trust is created by a declaration of intent to create a trust either orally or by an instrument in writing - a will or a codicil. In most instances, a trust is created through a Trust Deed and it requires registration.
The main features of a Seychelles International Trust
A Seychelles International Trust is characterized by the following features:
• Although trusts in Seychelles require registration, no single register in Seychelles holds trust documentation;
• The Settlor should not be a resident of Seychelles;
• The Trustee must be a resident of Seychelles;
• A Trust may own property anywhere in the world except Seychelles;
• The Settlor can be a beneficiary;
• A Trust may be created for up to 100 years unless it is agreed to be terminated earlier, as per the terms of the Trust Deed;
• The foreign income of a trust is not taxable in Seychelles.
The main benefits of a Seychelles International Trust
The International Trusts Act 1994 provides for the following:
• If a person creates a trust or makes or transfers his/her property to the trust, neither the trust nor the transfer or disposition shall be invalidated by any rule of forced heirship, or due to the fact that the concept of trust is unknown to the jurisdiction other than Seychelles.
• Unless otherwise declared by the Supreme Court of Seychelles, a trust shall not be void by reason of the Settlor’s bankruptcy or liquidation of the Settlor’s property or in any action or proceedings against the Settlor in case of a suit filed by the Settlor’s creditors.
• It is possible to file claims against the Settlor in relation to property transfer to the trust within 2 years from the date of property transfer or disposal.