Article 16 – Creation of a Trust
Trust is a legally binding relationship created by a Settlor through which Trust Property is held in the name of the Trustee (or another Person on behalf of the Trustee) who exercises, in relation to the Property, duties and powers in accordance with the Governing Law of the Trust and the Terms of the Trust for either or both of the following:
(A) the benefit of a
Beneficiary whether or not yet ascertained or in existence;
(B) any valid purpose that is not for the sole benefit of the
(2) Without prejudice to the provisions of Article 16(1) ), a
Trust will have the following characteristics:
Trust Property constitutes a separate fund and is not a part of the Trustee's own estate;
(B) title to the
Trust Property is held in the name of the Trustee or is held in the name of another Person on behalf of the Trustee; and
Trustee has the power and the duty to manage, employ or dispose of the Trust Property in accordance with the Terms of the Trust and the duties imposed upon it by any applicable law.
Trust may be created by:
(A) transfer of
Property to another Person as Trustee during the Settlor's lifetime or by will or other disposition taking effect upon the Settlor's death, provided that such disposition is not contrary to applicable Sharia law;
(B) the transfer of
Property from one Trust to another;
(C) declaration by the owner of
Property that the owner holds identifiable Property as Trustee; or
(D) exercise of a power of appointment in favour of a
Trust must come into existence by an instrument in writing including a will or codicil.
Trustee may sue and be sued in its capacity as Trustee and may appear before any court or any Person acting in an official capacity.
|Amended (as from 24th December 2017).|