Cap. 331 ст. 3Meaning of trust.

(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 the 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 separate from the personal property of the trustee and from other property held by the trustee under any other trust.

(3) The trust property is held by or in the name or under the control of the trustee who shall have full power as well as the duty for which he is accountable, to administer, employ or dispose of the trust property in accordance with the terms of the trust and any special duties imposed on the trustee by any law applicable thereto, 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 the trustee shall have no 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 trustee desires to register property, movable or immovable, or documents of title to them, he shall be entitled to do so in his capacity as trustee or in such other way that the existence of the trust is disclosed.

(6) Trusts create fiduciary obligations 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.