Cap. 16 Art. 2095BSpouse as beneficiary under trust settled by other spouse.

(1) A person may settle property under trusts to his spouse acting as trustee for the benefit of beneficiaries including any such spouse as beneficiary.

(2) When a spouse is a beneficiary, a trustee may not enter into a contract of sale with the settlor spouse except in the cases specified in article 1366(b).

(3) A person cannot be a beneficiary under a trust settled by his or her spouse for more than the property that is allowed to be bequeathed or donated to such spouse in terms of this Code. Notwithstanding the terms of the trust and the rules at law otherwise applicable in relation to any excess, the excess shall be held by the trustee for the use and enjoyment of such spouse for his lifetime and thereafter shall be held on trust for the settlor or his heirs.

(4) If a beneficiary spouse is entitled at law to any property in ownership, the property held in trust up to the reserved portion, having regard to any other dispositions in such person’s favour, shall in virtue of this provision be held on separate trust for the benefit of such spouse alone irrespective of the terms of the trust. Any further property settled in trust for the benefit of the spouse shall, irrespective of the terms of the trust, be held under trust only for the use and enjoyment of the beneficiary for his lifetime and thereafter for the benefit of the settlor or his heirs. The above shall be without prejudice to the right of any person entitled to the reserved portion to demand the reduction of the trust when the settlement impinges on right of the reserved portion as provided by this Code.