Law 214 Will Trusts
Although Monaco has no trust law itself, under Law 214, it allows foreign residents to create will trusts in Monaco. Such will trusts can be created either during lifetime or by will on death. The individuals must be from countries that recognise trusts. These trusts will enable the individual to avoid Monaco’s forced heirship rules.
The Law allows both new settlements and transfers to Monaco of existing arrangements for any person who, at the date of the settlement, was a foreign national.
Will trust conditions
A trust to benefit from the provisions of Law 214 must:
1. Be executed in Monégasque notarial form; and
2. At least one of the trustees must be selected from a list of corporations with trust powers approved and maintained by the Court in Monaco; and
3. There must be annexed to the trust an opinion from a qualified lawyer of the settlor's country certifying that the trust is valid under that country's law; and
4. Pay registration taxes as applicable.
Registration taxes
Monaco registration tax is payable as follows:
- For life time trusts the rates depend on the number of beneficiaries. The rates vary from 1.3% to 1.7% levied on the assets paid into the trust. The tax is due at the time the trust instrument is registered.
- For will trusts, the tax is payable on completion of the administration of the estate. It is calculated on the net assets paid into the trust at the above rates.