INTERNATIONAL TRUSTS ACT, 1994 (Act 26 of 1994)

PART III

CREATION OF INTERNATIONAL TRUSTS

15.(1) An international trust -

(a) may be created by an oral declaration, or by an instrument in writing, a will or codicil;

(b) shall not be enforceable unless there is in relation to it a registered declaration of trust.

(2) This section shall not apply to resulting, implied or constructive trusts.

16.(1) Subject to section 4(3), any property other than property situated in Seychelles may be held on trust.

(2) A trustee of an international trust may accept property to be held on trust or to be added to the trust property from any person not being a resident.

(3) A beneficial interest may be held on trust.

17.(1) A beneficiary shall be -

(a) identifiable by name; or

(b) ascertainable by reference to -

(i) a class; or

(ii) a relationship to another person, whether or not living at the time of the creation of the trust or at the time by reference to which, under the terms of the trust, members of a class are to be determined.

(2) The terms of an international trust may -

(a) provide for the addition of a person as beneficiary, or for the exclusion from benefit of a beneficiary;

(b) impose an obligation upon a beneficiary as a condition of benefit.

(3) A settlor or trustee of a trust may also be a beneficiary but shall not, subject to sections 21, 55(3) and 57 at any time be the sole beneficiary of the trust.

18.(1) Subject to the terms of the international trust, a beneficiary may disclaim an interest or any part of it, whether or not the beneficiary has received any benefit from it.

(2) A disclaimer shall be in writing and, subject to the terms of the trust, may -

(a) be temporary; and

(b) where the disclaimer so provides, be revoked in the manner and circumstances specified in the disclaimer.

(3) A disclaimer shall not be effective until received by a trustee.

19. The interest of a beneficiary shall form part of the beneficiary's movable property and as such may, subject to the terms of the international trust, be sold, pledged, charged, transferred or otherwise dealt with.

20.(1) Subject to subsections (2) and (3) and to this Act, an international trust shall be valid and enforceable in accordance with its terms.

(2) An international trust shall be invalid and unenforceable where -

(a) it has no beneficiary identifiable or ascertainable under section 17(1), unless it is a charitable international trust or a purpose international trust;

(b) it applies or purports to apply to property situated in Seychelles;

(c) the court declares that -

(i) it was established by duress, fraud, mistake, influence, misrepresentation, or in breach of fiduciary duty;

(ii) it is immoral;

(iii) its terms are so uncertain that its performance is rendered impossible; or

(iv) the settlor was, at that time of its creation, incapable of creating such a trust.

(3) Where some of the terms of an international trust are invalid but others are not -

(a) in case the terms cannot be separated, the trust shall be invalid;

(b) in case the terms can be separated, the court may declare that the trust is valid as to the terms which are valid.

(4) Where an international trust is partially invalid, the court may declare what property is and what property is not to be held subject to the trust.

(5) An application to the court under this section may be made by any person interested in the trust.

21. Any property as to which an international trust is invalid shall, subject to any order of the court made under section 20, be held by the trustees in trust for the settlor absolutely or, if the settlor is dead, for the settlor's personal representative.