MAURITIUS Law and Practice Contributed by: Johanne Hague, Ashwin Mudhoo, Medina Torabally and Yushrah Bayjou, CMS Prism in association with CMS
rental income although the ownership of the assets has already been donated to the heirs prior to death. 2.7 Transfer of Assets: Digital Assets There is no specific law regarding the transfer of digital assets. Digital assets should be regarded as movable assets and therefore be subject to the same succes - sion rules. Mauritian law stipulates that the law of the domicile of the deceased (lex domicilii) shall apply to movable assets. This means that Mauritian succes - sion law will apply to movable assets of any person domiciled in Mauritius at the time of death. If a per - son is domiciled elsewhere, the law of the jurisdic - tion where they are domiciled at the time of death will apply to any movable assets owned by the person. 3. Trusts, Foundations and Similar Entities 3.1 Types of Trusts, Foundations or Similar Entities Trusts There are different types of trusts in Mauritius, which are described below. Charitable trust A charitable trust is formed for purposes beneficial to the public in general (in Mauritius or another country). These include the relief of poverty, the advancement of education, the advancement of religion, the protec - tion of the environment or the advancement of human rights and fundamental freedoms. Protective trust A protective trust provides for the protection of vul - nerable members of a family or certain beneficiaries. Purpose trust A purpose trust is formed for advancing a charitable or non-charitable purpose, such as holding an asset. Discretionary trust A discretionary trust gives the trustee the power to determine (subject to the terms of the trust deed) who the beneficiaries are and the allocation of income and capital among them.
A discretionary trust is the most common and flexible type of trust, mainly used in wealth protection and tax planning. The settlor settles assets into the trust and decides how the assets in a trust should be used in the trust deed or letter of wishes. The settlor can also be a beneficiary but cannot be the sole beneficiary. Once a trust is created, additional assets can be transferred on the trust to the trustee. The trust property is vested in the trustee chosen by the settlor. The trustee is appointed to hold and man - age the assets of the beneficiaries (although in more sophisticated structures, the trustee can appoint one or more investment advisers with a discretionary man - date to manage the assets of the trust). The terms of the trust deed may also provide for the appointment Foundations can be used for charitable and non-char - itable purposes. A foundation is a hybrid between a trust and a company. Its legal structure and functions are similar to those of a trust, but it is administered as a company. Foundations may be of interest to persons who are unfamiliar with the concept of trusts, particu - larly in civil law countries. Recent Developments The most recent development concerns the tax regime of trusts and foundations, as explained in 1.5 Stability of Tax Laws . 3.2 Recognition of Trusts A trust set up and administered in Mauritius is recog - nised and regulated by the Trusts Act 2001. The Trusts Act 2001 also recognises trusts settled and administered abroad. 3.3 Tax Considerations: Fiduciary or Beneficiary Designation of a protector. Foundations Under Mauritian law, a settlor may also be a ben - eficiary and a trustee of a trust (but they cannot be the only settlor, beneficiary and trustee). Similarly, a founder may be a council member or the beneficiary of a foundation.
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