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The Cyprus Trust LawOne Year On
Maria Kyriacou
Andreas Neocleous & Co LLC
The Law of Trusts in Antiquity
• The Greeks (Demosthenis case 365 BC)
• The Romans (fideicommissum 200 BC)
• The Crusaders (12th century)
• The Anglo-Saxon legal system
The Law on Trusts Today
• The Trustee Law Cap 193 of 1955
• The International Trusts Law No. 69(I) of 1992 to 2012
STEP
The law aims at further enhancing
Cyprus’s footprint as a leading trust
jurisdiction since in contrary to most
jurisdictions transparency and authority
will be granted from the law creating the
Trust.
Total Serve - Cyprus Amends International
Trusts Law
The Cyprus House of Representatives passed
late last week the eagerly-awaited amendment
International welcome of the new LawPWC - Amendment of the Cyprus
International Trusts Law
The new Law builds on the existing very
attractive Cyprus International Trusts
Law and has introduced many new
features.
Andreas Neocleous & CO LLC - Reform of the Cyprus International Trusts Law of 1992The long-awaited reform of the Cyprus International Trusts Law, a muchneeded initiative, has finally become reality
DeloitteReform of the Cyprus InternationalTrusts. The most modern and favourabletrust regime in Europe
The effects of the new Law• New Trust Companies Registered
• Increase in EU Family Trusts choosing the Cyprus Law
Cyprus International Trusts Cases
&
UK Case Law
Key features of the new Trust Law (1)
• Removes any prohibition on settlors relocating to Cyprus after establishing a Cyprus International Trust;
• Makes clear that all questions relating to Cyprus International Trusts are to be determined in accordance with the laws of Cyprus;
• Protects against the application of foreign laws, such as forced heirship laws, as a matter of public policy;
• Allows the settlor to reserve powers to himself, to retain a beneficial interest in trust property, or to act as the protector or enforcer of the trust
• Removes any limit on the duration of a trust;
• Widens trustees' investment powers and, in particular, abolishes the prohibition on investment in immovable property in Cyprus
Key features of the new Trust Law (2)
• Powerful asset protection features
• 2 year “hardening period”
• Valid transfers unless intention to defraud is proved
• Claimant must show that he or she was a creditor at the time of transfer
• Unaffected by matrimonial property or succession laws
Uses of Cyprus international trusts
• Individuals– Preservation of wealth – Managing family wealth– Pre-immigration planning– High-risk professions– Pre- or post- nuptial arrangements– Testamentary freedom– Philanthropy
Managing family wealth
A Cyprus international trust provides an effective structure for managing family wealth with the following benefits:•Flexibility - reserved powers, choice of law•Protection •Unlimited investment powers•Tax neutrality•Perpetual existence•Inheritance tax avoidance
High-risk professions• Claims may emerge many years after the
event and be disastrous in scale
- From doctors to accountants
- From architects to businessmen
• But also prudent for all It is not intended to offer a loophole to every settlor who wishes to avoid
his existing creditors. Instead, it is intended to offer a legitimate protection to persons who may be engaged in high risk professional activities.
The reform of the International Trusts
Law gives Cyprus the most modern and favourable trust regime in Europe, and restores it to the "premier league" of trust jurisdictions.