Section 7: Transfer on trust

7. Transfer on trust (1) Subject to the other provisions of this Act, any property may be held by or vested in a trustee on trust. (2) Notwithstanding subsection (1), no transfer or disposal to a trust shall be valid in respect of— (a) property which is inalienable under the law of Mauritius; (b) a leasehold interest the unexpired term of which is less than 18 years; (c) any immovable property in Mauritius where the trust is a noncharitable purpose trust. (3) Subject to the terms of the trust, a trustee may accept from any person property to be added to the trust property. (4) Where a settlor declares a trust respecting a property which he does not own at the time of the declaration— (a) the trust is incompletely constituted at the time of the declaration and no rights or duties arise under the trust instrument; (b) unless earlier revoked, the trust shall be deemed to come into existence at the time the settlor becomes legally entitled to the property which was the subject of the declaration. (5) Article 931 of the Code shall not apply to any transfer of property on trust. T22 – 5 [Issue 4] Trusts Act (6) The transfer or disposition on trust of property situated outside Mauritius, which if it had taken place in Mauritius would constitute a valid transfer or disposition of the property under this Act, shall not be declared void or invalid merely by reason that it contravenes the applicable law of the transfer or disposition, or the law of the transferor’s domicile or nationality. (7) The trustee shall not acquire a better title to the trust property than the one which the settlor or transferor had immediately before the transfer or disposition. (8) Where property in Mauritius is transferred upon trust under the laws of Mauritius, the deed of transfer shall mention expressly the transferee in his capacity as trustee. (9) No transfer of property to a trustee on trust shall be valid otherwise than in accordance with the formalities prescribed for such transfer.