Trusts and Trustees Act (Cap. 331), article 3

3. (1) A trust exists where a person (called a trustee) holds, as owner or has vested in him property under an obligation to deal with that property for the benefit of persons (called the beneficiaries), whether or not yet ascertained or in existence, which is not for the benefit only of th e trustee, or for a charitable purpose, or for both such benefit and purpose aforesaid. (2) The trust property shall constitute a separate fund owned by the trustee, distinct and separa te from the personal property o f the trustee and from other property held by the trustee under any o ther 6 CAP. 331.] TRUSTS AND TRUSTEES trust. ( 3 ) T h e t r u s t pr op e r ty i s he l d by o r i n t h e na m e or un d e r t h e control of the trustee who shall have full power as well as the duty for which he is accountable, to administer, employ or dispose o f the trust property in accordance with the terms of the trust and an y special duties imposed on the t rustee by any law applicable the reto, to sue and be sued in respect of the trust and otherwise to act in all matters concerning the trust. (4) The holding of property under trusts shall have the following legal effects: (a) that personal creditors of t h e t r u s t e e s h a l l h a v e n o recourse against the trust property; (b) that the trust property shall not form part of the trustee’s personal estate upon his insolvency or bankruptcy; and (c) that the trust property shall not form part of the matrimonial property of the trustee or his spouse nor part of the trustee’s estate upon his death. (5) A trustee shall be entitled to appear or act in his capacity as trustee before any court, any notary or any person acting in an official capacity. Where the trus tee desires to register proper ty, movable or immovable, or documents of title to them, he shall b e entitled to do so in his capacity as trustee or in such other w ay that the existence of the trust is disclosed. (6) Trusts create fiduciary ob ligations upon the trustee in favour of the beneficiary of the trusts. The settlor of trusts shall have no rights in relation to trust property except as provided by this Act. Breach of trust. 4. Any breach of duty imposed on a trustee by this Act or by the terms of the trust or by the proper law of the trust, and a ny act or neglect on the part of the trustee which is not authorised o r excused by this Act, or the proper law of the trust or the term s of the trust, shall be and is by th is Act defined a breach of trus t. Proper law of trusts. Amended by: XX. 1994.4; XIII. 2004.5.