Trust for Succession Planning in Mauritius
Structuring inter-generational wealth transfer through a Mauritius trust — protecting the family's assets, providing for future generations and ensuring that your wishes are honoured.
Succession planning is perhaps the most important application of a Mauritius trust. A properly constituted discretionary trust allows a settlor to transfer assets out of their estate during their lifetime, provide clearly for chosen beneficiaries across multiple generations, and ensure that wealth is distributed in accordance with carefully considered wishes — while protecting the assets from forced heirship claims, creditor risks and the uncertainties of intestacy. Unlike a will, a trust is a living structure that comes into effect immediately and can be managed and adapted throughout the settlor's lifetime. Under the Trusts Act 2001, Mauritius trusts can endure for up to 99 years, making them ideal vehicles for multi-generational wealth planning.
How a trust serves succession objectives
Removal from the estate
Assets settled into a properly constituted trust are no longer part of the settlor's personal estate. They do not pass through probate, are not subject to forced heirship rules in many jurisdictions and are not available to the settlor's personal creditors — provided the trust is not challenged as a sham or as a fraudulent disposition.
Discretionary distribution to beneficiaries
A discretionary trust allows the trustee to decide how and when to distribute income and capital to beneficiaries, based on a letter of wishes provided by the settlor. This flexibility allows distributions to be tailored to individual circumstances — education costs, business investment, retirement — rather than following a fixed formula.
Multi-generational planning
A Mauritius trust can endure for up to 99 years, spanning three or more generations. The trust deed can be drafted to provide for children, grandchildren and even future generations not yet born, ensuring that wealth is preserved and passed on according to the family's values.
Protection of vulnerable beneficiaries
A spendthrift or protective trust can ring-fence the interests of beneficiaries who may lack financial discipline or who have their own creditor exposure. Rather than receiving a lump sum that might be dissipated, the beneficiary receives structured distributions from the trustee.
Bypass of forced heirship
Many civil law jurisdictions impose mandatory inheritance shares for children or spouses. A Mauritius trust, properly established, can provide an effective mechanism for bypassing such rules and distributing assets in accordance with the settlor's actual wishes. Legal advice in the settlor's home jurisdiction is essential.
Establishing a succession trust in Mauritius
Family and asset mapping
We work with you and your advisers to identify all relevant family members, the assets to be included in the trust, and the succession objectives — who should benefit, in what circumstances and in what proportions.
Trust deed drafting
The trust deed is drafted to reflect your objectives — specifying the class of beneficiaries, trustee powers, distribution framework and duration. Special provisions for vulnerable beneficiaries or charitable distributions can be included.
Letter of wishes
A non-binding but highly persuasive letter of wishes is prepared, guiding the trustee on how you would like distributions to be made and setting out your values and intentions for the family's wealth.
Trust establishment and asset transfer
The trust is formally constituted, the trustee appointed, KYC completed and assets transferred. The letter of wishes is delivered to the trustee and held confidentially on the trust file.
Review and update
Succession planning is not a one-time exercise. We recommend a periodic review — every 3 to 5 years or on any major life event — to ensure the trust continues to reflect the family's wishes and circumstances.
What we need to get started
- Overview of the family: settlor, spouse, children, grandchildren and any other intended beneficiaries
- Schedule of assets to be settled into the trust
- Outline of succession wishes — who should benefit and in what circumstances
- Details of any forced heirship concerns in the settlor's home jurisdiction
- Identification of any vulnerable beneficiaries requiring special provisions
- Details of any existing structures (wills, existing trusts, companies)
- Full KYC for all principals
Indicative costs for a succession trust
| Item | Indicative range |
|---|---|
| Trust deed drafting (succession focus) | USD 3,500 – 8,000 |
| Letter of wishes drafting | USD 500 – 1,500 |
| Trust setup and KYC | USD 1,500 – 3,000 |
| Annual trustee and administration fee | USD 6,000 – 20,000+ |