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A. INTRODUCTION To fully accomplish its targets, and to increase its appeal as an international trust jurisdiction as well, Cyprus enacted in 1992 a new trust law designing and modernising the existing statute (The Trustees Law Chapter 193) and introducing the concept of international trusts specifically aimed at non-resident settlors. The new law is called The International Trusts Law 1992 (No. 69 (i) of 1992). (ITL). From the legal point of view that was easy as Cyprus (being an ex British Colony) follows English law, the common law and the doctrine of equity. The basic Trustees Law Cap. 193 was in fact enacted during British administration in 1955 and is a copy of the English Trustees Law of 1925. Although Cyprus became independent in 1960 our Courts of Justice Law provided in Section 29 that the Court should apply (amongst other laws) and subject to the constitution of Cyprus, the common law and the doctrine of equity. But since 1960, because English case Law has had no direct application to Cyprus, all the amendments in the U.K. statutory provisions were not followed and until 1992 the old Trustees Law Cap. 193, and the English Trusts Law, as it applied in 1960, were the only trust laws in existence (together of course with the common law and equity principles). With the introduction now of the I.T.L. the principles on which trusts in general and the trust instrument shall be based and construed are:
B. WHAT IS A TRUST? A trust is created by one person (the Settior) who transfers property to another person or persons (the trustee/s) who must hold that property for the benefit of other person or persons (the beneficiary/beneficiaries) The trustee must abide by the
Trusts are confidential and private entities and can be
tailor made to the particular requirements of the parties concerned. C. Although there are nowhere in the texts categories of the various types of trusts existing and allowed under Cyprus Law, nevertheless, one may say that there are only three (3) types:
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