In practice, a Gibraltar trust is created by an instrument in writing (a "Deed") although the law allows trusts to be created in any manner and in particular by oral declarations or by conduct of the relevant parties.
Trusts created in writing normally take one of two forms, either a settlement executed by the settlor himself and the trustee or a declaration of trust drawn up by the trustee alone. Which form is used is a question of administrative or personal convenience.
Proper law
One important aspect of the creation of a trust is the "Proper Law" (ie the body of national law which should govern its administration). Many countries, such as Gibraltar, have laws which apply to trusts and which the trustees must apply in the administration of the trust. There may be circumstances in which a different proper law would be more appropriate. If another proper law is selected, the trust may still be administered in Gibraltar with the usual benefits. The trustees will, however, have to have regard to the proper law.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
