The Maltese trust law is based on the 1984 Trust (Jersey) law: it allows the formation of trusts with beneficiaries, fixed or discretionary, and the creation of trusts for charitable purposes. A trust can be established to operate as long as the founders are alive or in the event that one of the founders dies. Each trust is tailored to meet the particular needs of the case in question.

Trusts can be private or commercial and, in both cases, involve a person (the “trustee”) who holds the property for the interests of others. The fundamental point of the trust is the trust property assigned to the trustee, a protector can be appointed by the founder to exercise control and the founder can communicate through “letters of interest” with the trustee to maintain a communication channel between all interested parties . The Maltese code provides detailed regulation of the institution of the trust as well as defines from the legislative point of view the fiduciary obligations that define relationships in the context of the trust.

Private trusts deal with the interests of private subjects, while commercial trusts range from guarantee trusts, which can operate jointly with the elaborate private guarantee law existing in Malta, to trusts used in the establishment of collective investment schemes up to the trusts used in the context of the offer of collateral.