| CODE | CML5031 | ||||||||
| TITLE | Trusts and Trustees: Legal and Practical Issues | ||||||||
| UM LEVEL | 05 - Postgraduate Modular Diploma or Degree Course | ||||||||
| MQF LEVEL | 7 | ||||||||
| ECTS CREDITS | 5 | ||||||||
| DEPARTMENT | Commercial Law | ||||||||
| DESCRIPTION | The trust has been described as "the greatest and most distinctive achievement performed by Englishmen in the field of jurisprudence". The study-unit will examine the concept of a trust arrangement and the manner in which this institute originating in the English law of Equity, has been imported into Malta, and made part of our domestic system of law. The Maltese law on Trusts and Trustees, as repeatedly amended and re-named over the years, will be analyzed with particular focus on the essential features of a Maltese Trust and the powers and duties of trustees under Maltese Law, also in the context of the broader concept of fiduciary relationships as provided for in the Civil Code. The Hague Convention on the law applicable to trusts and their recognition will be considered and the extent of its applicability in Malta discussed. Finally some practical applications of the trust will be illustrated. The study-unit will attempt to cover the following aspects: 1. Evolution of Equity and the law of Trusts - Development of common law and equitable principles - Maxims of equity - Development of trust concept - Parties to a trust 2. Creation and Validity of Trusts - Capacity to create trust - 4 Certainties (i) intention to create trust (ii) subject-matter (iii) beneficiaries who can enforce terms of trust (iv) administrative workability - Settlor and Trustees as beneficiaries - Trusts for Commercial Transactions - Private Trusts and the Notarial Procedure - Duration of Trusts - Formalities relating to constitution of a trust - Sham trusts - Letters of wishes - Variation and termination of trusts 3. Types of Trusts - Definition of a trust - Classification of trusts - Express trusts - Implied or resulting trusts - Constructive trusts - Charitable trusts 4. The Trust Instrument - Standard provisions - Discretionary trusts - Bare trusts - Life interest trusts 5. Appointment and Resignation of Trustees - Appointment - Resignation/Removal 6. Powers of Trustees - Powers of Trustees - Delegation of powers - Manner of exercise of Powers 7. Duties of Trustees - Subsidiary duties - Duty of care of bonus paterfamilias - Trustees Power of Appointment - Exercise of discretions and powers - Dispositive powers - Civil Code provisions on Fiduciary obligations - Letter of wishes - Changes in Trustees - Indemnification 8. Distributions of Trust property - Duties of trustees in relation to distribution of property - Trustees duty to distribute in contrast with dispositive powers to distribute 9. Rights of Beneficiaries - Rights to trust accounts - Remedies in case of breach 10. Breach of Trusts 11. The Protector - The role of the protector - Powers and duties of protector - Rights of beneficiaries against protector 12. Governing Law - Concept of conflict of laws - Proper Law of trust - Change in proper law - Hague Convention on law applicable to trusts and their recognition 13. Regulation of trustees under the Trusts and Trustees Act - Distinction between professional and private trustees - Exemptions from authorization - MFSA's regulatory and investigatory powers 14. The civil law aspects of trusts and the integration of trusts into the Civil Code The new provisions on fiduciary obligations in the Civil Code 15. Elements of taxation and accounting for trusts Learning Outcomes: Successful students will have gained a clear understanding of the concept of trust relationships, as understood in the context of Maltese law, including exposure to how trust structures are used in practice. The recognition of foreign trust relationships will also be better appreciated. Students would have gained the benefit of analyzing and appreciating various theoretical and practical issues arising from the constitution and administration of trusts. Reading List: - The Modern Law of Trusts, Parker & Mellows, 9th Ed., Sweet & Maxwell, 2003. - Hayton & Marshall: Cases & Commentary on the Law of Trusts, David Hayton, 12th Ed., Sweet & Maxwell, 2005. - Introduzione ai Trusts, Maurizio Lupoi Giuffre Editore, 1994. - A Practioner鈥檚 Guide to Trusts, John Thurston, 3rd Ed, Tolley, 2001. - Asset Protection Trusts, grudy, Briggs & Field, 3rd Ed, Key Haven Publications, 1997. - Equity & Trusts, Alaister Hudson, 5th Ed., Cavendish Publishers, 2007. |
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| STUDY-UNIT TYPE | Lecture | ||||||||
| METHOD OF ASSESSMENT |
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| LECTURER/S | Stephen Attard Anthony T. Fenech (Co-ord.) Rudolph Psaila |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2025/6. It may be subject to change in subsequent years. |
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