This year, the Republic of Cyprus ratified The Hague Conventions’ definition of the legislation applicable to trusts and furthering the regulations surrounding their recognition. Cyprus common law now recognises trusts as a unique legal institution under equity.
The term “trust” refers to the legal relationships created during the lifetime or upon death by a certain person, known as the Settlor, when the Settlors assets have been placed under the control of a Trustee for the benefit of a Beneficiary or for a specific purpose. According to the convention, a valid trust must have been created voluntarily, and evidenced in writing as having the following characteristics:
A valid express trust is governed by the law chosen by the settlor and the choice must be expressed or implied in the terms of the instrument creating or evidencing the trust in writing. New Cyprus trust law governs:
The convention institutes common requirements for all contracting jurisdictions, recognises a trust which is created in accordance with the law, providing that the property of the trust constitutes a separate fund, that the Trustee may sue and be sued in his capacity and that he may appear or act in this capacity before any person acting in an official capacity.