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Marshall Islands trust: how it works and how to set one up
A Marshall Islands trust is a trust formed under the Trust Act of 1994, where a trustee holds assets for beneficiaries the deed names or describes. We coordinate the checks, papers and trustee contact, and your own lawyer reviews the deed.
Reviewed by a senior trust administrator, updated
Key facts
- Governing law
- Trust Act of 1994, Title 50, Chapter 1 of the Revised Code (2004 edition)[1]
- Perpetuity period
- Section 108 (2004 text): up to 100 years, charitable trusts excepted[1]
- Asset protection rule
- Section 145: a creditor must prove principal intent to defraud[1]
- Registration
- Part V: register by trustee certificate or copy of the trust instrument[1]
Numbers in brackets point to the Sources list at the end of this page.
Swipe sideways to see the whole diagram.
- SettlorSets up the structure and transfers assets into it
- transfers assets under a trust deedTrusteeHolds the assets and manages them under the trust deed
- holds and distributesBeneficiariesPeople who benefit from the trust under its terms
- Trustee holds legal titleTrust assetsThe property held in the structure
Roles and notes
| Part of the structure | What it does |
|---|---|
| Settlor | Sets up the structure and transfers assets into it |
| Trustee | Holds the assets and manages them under the trust deed |
| Beneficiaries | People who benefit from the trust under its terms |
| Trust assets | The property held in the structure |
- The settlor transfers assets to the trustee under a written deed.
- The trustee holds the assets and decides under the deed.
- Beneficiaries are named or described in the deed.
- Part V of the Trust Act provides for registration with the Registrar.
What a trust in the Marshall Islands is
It is a trust governed by the Trust Act of 1994, which sits in Title 50, Chapter 1 of the Marshall Islands Revised Code. You transfer assets to the trustee, and the trustee holds them for the people the deed names or describes.
Many deeds are discretionary, so the trustee decides on distributions within the deed and your letter of wishes.
The main roles are few:
- The settlor creates the trust and transfers assets.
- The trustee holds the assets and decides under the deed.
- Beneficiaries may receive distributions, by name or as a described class.
- A protector, where the deed creates one, can be asked to consent to key decisions.
The Act provides for registration with the Registrar. A trust is entered on the register by a trustee certificate with a notice of creation, or by a copy of the trust instrument.
Registration is therefore part of the set-up, not an afterthought. The legal features page lists the sections of the Act that apply.
Your lawyer confirms how the Act applies to your deed, including beneficiaries who do not live in the islands.
Who a trust in the Marshall Islands suits
This structure suits families with assets or beneficiaries in more than one country. It also suits advisers comparing Pacific places for a client.
Reasons that bring people to a structure like this include:
- They want one trustee and one set of records for assets in several countries.
- They are planning succession and want the trustee to follow written wishes.
- They are comparing island options and want sourced facts, not sales copy.
A trust is not the right tool for every goal. The first review may show that another place or another tool suits you better.
Our guide to wealth structuring explains how we approach that choice in general.
Before you ask for a quote, it helps to know three things about your own plan:
- Where you live and pay tax, since your home country sets the rules that bind you.
- Which assets you expect to move, such as cash, shares or property.
- Who should benefit, and whether you want them named or described as a class.
Short answers to each are enough at this stage. We refine them with you and your lawyer later.
What the trustee does
The trustee legally holds the assets and must follow the deed. It keeps accounts and records, decides on distributions, and signs the documents that move assets.
The Act sets the trustee’s duties in its own sections, and your lawyer reads them against your deed.
Your lawyer confirms whether the Act requires the trustee to live in the islands, or to be a particular type of company.
A local trust company holds office as trustee, and we are your contact. Our part is the identity checks, the papers and the preparation with your lawyer. The trustee takes the decisions.
This split matters when something changes, such as a new beneficiary or a different protector. You send us the request, we prepare the papers, and the trustee decides under the deed.
A protector, where the deed creates one, can be given powers such as approving distributions or replacing the trustee. Your lawyer advises who should hold each role.
The deed is the document that matters most. It states what the trustee may do, whom it must consult, and how a beneficiary or a role can change.
A letter of wishes sits beside the deed. It tells the trustee how you would like it to use its discretion, and it does not bind the trustee. Keep it current as your family changes.
The trustee should also meet you at set points, not only when something goes wrong. Ask how often, and who attends, before you sign.
Documents and steps to start
The set-up follows a fixed order. Nothing is signed until your lawyer has reviewed the deed and the trustee has confirmed it will act.
- Enquiry, then identity checks.
- Design of the structure with your lawyer.
- Drafting of the deed and your letter of wishes.
- Signing and acceptance by the trustee.
- Registration with the Registrar.
- Transfer of assets to the trustee.
We first ask for identity documents, evidence of the source of funds and wealth, and beneficiary details. After that, timing depends on third parties: your lawyer, the trustee, the bank and the registry.
We give you a checklist and a list of open items, not a promised date. A missing bank letter can hold up every later step.
The steps are the same wherever you live. Signing at a distance is agreed with counsel. The step-by-step guide lists the documents in more detail.
Cost, tax and reporting in outline
The cost follows the size and shape of the structure more than the place. We publish the set-up fee for a standard trust; annual administration, event-based work and third-party charges are quoted after we review your case.
Any figure in an estimate comes from the written terms of the trustee and the law firm.
The main drivers are:
- The number of parties, holding companies and bank accounts.
- The kinds of assets, since private company shares take more work than cash.
- The legal drafting, which grows with every special clause.
- The trustee’s yearly work and any government registration charges.
The cost page walks through each item.
Tax follows the people, not only the trust. Your home country decides how it treats you as settlor or beneficiary, so your own tax adviser tells you what to file.
Tax and reporting duties for non-resident entities sit in other laws; your lawyer and tax adviser confirm which apply.
We do not promise any tax outcome.
Where to start
We work with a local trust company as trustee and a local law firm, and bring both together for you.
Start with a quote. Tell us where you live, what assets you hold and what you want the trust to do, and it commits you to nothing.
If you already hold a trust, our page on trust administration shows what we do for existing trusts, and our jurisdictions hub lists the places we cover.
Facts we reviewed, with source and date
| Topic | What the source says |
|---|---|
| Governing law | Trust Act of 1994, 2004 edition of the Revised Code |
| Time limit | Up to 100 years in the 2004 text, charitable trusts excepted |
| Registration | Part V, by trustee certificate or copy of the instrument |
| Creditors | Section 145, creditor must prove principal intent to defraud |
Basis: FAOLEX copy of the Marshall Islands Revised Code, Trust Act (1994), 50 MIRC Chapter 1; accessed 2026-11-05.
The table above takes points from the 2004 text. Your lawyer confirms how they apply to your deed.
Short answers to common questions sit on the plain-answers page.
Frequently asked questions
Who can set up a trust in the Marshall Islands?
Whether the Trust Act 1994 is aimed at settlors or beneficiaries who live abroad is a point your lawyer confirms. Whether the structure suits you depends on where you live and pay tax, which your own tax adviser checks. Tell us your country of residence in your first message.
How do I start in the Marshall Islands?
Start with a short description of your assets and beneficiaries. We begin with identity and source-of-funds papers, then design the structure with your lawyer. Nothing is signed until your lawyer has reviewed the deed. A short note is enough to begin, and you do not need every paper yet.
Who can help me start in the Marshall Islands?
You need a lawyer qualified in the islands to review the deed, and a trustee that will act. We are your single contact and bring both together. Your own lawyer and tax adviser at home see the same drafts we send you.
Is there a time limit on a Marshall Islands trust?
The 2004 text of the Trust Act limits most trusts to 100 years, with charitable trusts excepted. Your lawyer confirms how it applies to your deed. The deed should say what happens when any limit is reached, and the law page lists the section.
Can a Marshall Islands trust be registered?
Yes, Part V of the Trust Act covers registration. A trust is listed with the Registrar through either a trustee's certificate that includes a notice of creation, or a copy of the deed. Your lawyer confirms the current filing steps and who submits them, and keeps proof of entry with the trust papers.