Thursday, 29 July 2010
Appointment and Discharge
Trustees are appointed by the settlor. There are no rules as to how many trustees should be appointed in respect of each trust although it is advisable to appoint more than one trustee.
A trustee does not have to accept the appointment and may refuse to act as trustee either expressly or by implication.
If none of the appointed trustees of a particular trust accept the appointment, then the trust property will revert by resulting trust back to the settlor or his personal representatives,
Under the 1955 Trustees Law, the courts may in certain cases discharge or replace trustees and appointing new ones.
Trustees’ Main Duties
The general rule is that the trustees do not have the power to vary the terms of the trust under any circumstances.
The only case when they may vary the trust is when all the beneficiaries are of full age and capacity. If so, then they can together authorise the trustees to deal with the trust property in a manner different to that specified in the trust instrument.
In trusts where the beneficiaries belong to certain specific classes (ie unsound of mind, incapacitated, infant) the court may vary the terms of the trust if satisfied that the variation is in the best interests of the beneficiary.
The trustees in their private lives may not act in any way that brings them in conflict with their duties as trustees. They are also not allowed to make any profit from their position as trustees unless they are expressly authorised by the trust instrument.
Also, with some limited exceptions, they may not delegate their duties. The exceptions provided for in the law include the right to employ a solicitor, a banker etc. they would be paid out of the trust property.
Trustees’ Liabilities
Unless the trust instrument expressly provides otherwise, trustees are not entitled to any payment for their services. They may, however, be reimbursed from the trust property for any expenses they incur in performing their duties.
Any action taken by the trustee that is in excess of their powers or contravenes the terms of the trust instrument is a “breach of trust” and the trustee is personally liable for the full extent of any loss incurred as a result of such a breach.
Trustee Services
Trustees in Cyprus manage the trust property and follow the settlor’s wishes as expressed to them in the letter of wishes.
Costs
There are no stamp duties on the settlement of property in a Cyprus trust. A stamp duty of CYP 250 is payable on the creation of an international trust. A trust can be created within a few days and the cost of creation will vary, according to the complexities involved. The annual cost of administering the trust depends on the work involved and the time spent. The fee is not calculated as a percentage of the trust property.
Trustees are appointed by the settlor. There are no rules as to how many trustees should be appointed in respect of each trust although it is advisable to appoint more than one trustee.
A trustee does not have to accept the appointment and may refuse to act as trustee either expressly or by implication.
If none of the appointed trustees of a particular trust accept the appointment, then the trust property will revert by resulting trust back to the settlor or his personal representatives,
Under the 1955 Trustees Law, the courts may in certain cases discharge or replace trustees and appointing new ones.
Trustees’ Main Duties
- to administer the trust property prudently; and
- to comply strictly with the terms of the trust.
The general rule is that the trustees do not have the power to vary the terms of the trust under any circumstances.
The only case when they may vary the trust is when all the beneficiaries are of full age and capacity. If so, then they can together authorise the trustees to deal with the trust property in a manner different to that specified in the trust instrument.
In trusts where the beneficiaries belong to certain specific classes (ie unsound of mind, incapacitated, infant) the court may vary the terms of the trust if satisfied that the variation is in the best interests of the beneficiary.
The trustees in their private lives may not act in any way that brings them in conflict with their duties as trustees. They are also not allowed to make any profit from their position as trustees unless they are expressly authorised by the trust instrument.
Also, with some limited exceptions, they may not delegate their duties. The exceptions provided for in the law include the right to employ a solicitor, a banker etc. they would be paid out of the trust property.
Trustees’ Liabilities
Unless the trust instrument expressly provides otherwise, trustees are not entitled to any payment for their services. They may, however, be reimbursed from the trust property for any expenses they incur in performing their duties.
Any action taken by the trustee that is in excess of their powers or contravenes the terms of the trust instrument is a “breach of trust” and the trustee is personally liable for the full extent of any loss incurred as a result of such a breach.
Trustee Services
Trustees in Cyprus manage the trust property and follow the settlor’s wishes as expressed to them in the letter of wishes.
Costs
There are no stamp duties on the settlement of property in a Cyprus trust. A stamp duty of CYP 250 is payable on the creation of an international trust. A trust can be created within a few days and the cost of creation will vary, according to the complexities involved. The annual cost of administering the trust depends on the work involved and the time spent. The fee is not calculated as a percentage of the trust property.