Malta

A LAW

01 In terms of the Trusts and Trustees Act, the Court is the overseer of the operation of trusts from their inception to their termination. Evaluate this statement with particular reference to ad hoc legal provisions which vest this power in Court.

02 Discuss the rights that a settlor has when he settles a trust with particular emphasis on the implications arising when a settlor retains a high degree of control over the assets settled in trust.

B ACCOUNTS AND ADMINISTRATION

01 Accounts generally aim at offering a true and fair view of the assets for the benefit of third parties. Relate this statement, if at all, to the account-keeping duties of trustees.

02 Beneficiaries and Settlors make their requests to trustees via letters of wishes. Examine the nature of the letter of wishes and the effect on the actions of the trustees that this may have.

C TAXATION

01 "The tax treatment of trusts in Malta provides neither choice nor opportunity". Discuss this statement.

02 What are the advantages and disadvantages of a settlor retaining an interest in a settlement, with particular reference to taxation issues?

D INTERNATIONAL ISSUES

01 CBEG Prize topic: You’re approached by a married couple, both British citizens of Greek descent, who own a house in an affluent area of London, which is their only residence and a small IT business that makes an annual profit of around £1 million, which is their main source of income. The wife has taken up property development as a hobby and has one or two small properties across the Southeast of England at any time, which she works on on weekends and aims to sell within a year of purchase. The husband has recently inherited some land in Northern Cyprus and the couple would like to have new Wills to take this into account, naming their son and two daughters as equal beneficiaries of their shared property. Give a detailed analysis of the issues that a conscientious will writer should take into account at each stage of the will writing process, from taking instructions to delivery of the completed documents.

02 The Hague Convention on the Law Applicable to Trusts and on their Recognition was instrumental to promote the international recognition of trusts, especially in jurisdictions that do not have domestic trust legislation. Consider this statement with particular review of the salient articles of the Convention.