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Marshall Islands trust questions and answers
Marshall Islands trust questions, answered in plain words: who does what, how set-up and reporting work, and where to get help. Each answer is short and written for a first-time reader; linked pages hold the detail and sources. Start with a quote.
Reviewed by a senior trust administrator, updated
Top questions
Jump to an answer below.
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]
- 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.
Basics
A trust in the Marshall Islands follows the common law pattern. A settlor transfers assets, a trustee holds them, and beneficiaries may benefit under the deed.
The statute is the Trust Act of 1994, in Title 50 of the Revised Code. The law page lists the sections and their sources.
Questions about the time limit are answered on the islands overview.
What does a trustee do in the Marshall Islands?
The trustee legally holds the assets and manages them under the deed. It keeps accounts and records, decides on distributions and signs the papers that move assets. A trustee that only signs what the settlor sends is a warning sign, so the deed must be followed in practice.
Can someone who lives abroad use a trust in the Marshall Islands?
Whether the Act is aimed at beneficiaries who live abroad is a point your lawyer confirms for your case. Whether the structure suits you depends on your home country and tax position. Your own lawyer confirms that before you sign, and we work with both of your advisers.
How is a trust in the Marshall Islands different from a will?
A will takes effect on death and passes through probate. A trust takes effect once you sign and fund it, and the trustee holds the assets during your life and after. A trust does not replace a will, and many people keep both.
Who do I need besides the trustee?
You need a lawyer qualified in the islands to review the deed, your own lawyer and tax adviser at home, and a bank or custodian to hold the assets. The Registrar receives the registration papers. A protector is optional and exists only if the deed creates the role.
Is a Marshall Islands trust the same as a company registered there?
No. A trust is a relationship in which a trustee holds assets for beneficiaries, while a company is a separate legal person. A trust can own a company, and many structures use both. Your lawyer explains which parts of your plan suit each.
What should a Marshall Islands deed say about the end of the trust?
Whatever the final time limit is, the deed should say what happens to the assets when the trust ends, such as who receives them and who winds up the accounts. Your lawyer drafts that clause once the current limit is confirmed, and we send the draft to both of your advisers.
Setting up
You pass identity and source-of-funds checks, design the structure with your lawyer, approve the deed and sign. Registration with the Registrar and the move of assets follow.
The formation guide shows the order we follow.
What papers does the trustee ask for first?
Expect identity documents, proof of address, evidence of the source of funds and wealth, and a list of the assets to transfer. For registration, your lawyer also prepares the trustee certificate or a copy of the trust instrument. Proof of where the money came from is usually the slowest item.
Do I need to travel to the Marshall Islands to sign?
Counsel and the trustee agree how the deed is signed and how meetings are held, and some steps may be done at a distance with certified copies. The islands sit four hours ahead of Hong Kong, so call times are fixed early. Mention any travel limits in your first message.
Running the trust
Once the trust holds assets, the trustee runs it under the deed, keeps accounts and records decisions in resolutions.
Banks and courts look for real decisions properly recorded. Keep the proof of registration with the deed so that the file shows both.
The breakdown of what you pay for explains each yearly item. 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.
Who makes decisions once the trust is running?
The trustee decides under the deed. You may be able to guide it through a letter of wishes, which does not bind the trustee. A protector, where the deed creates one, can be given the power to consent to key decisions.
What happens if my family or assets change?
Tell the trustee. A marriage, a birth, a move to a new country or the sale of a business can all call for changes to your letter of wishes or the deed. Plan a review each year, and another when something changes.
Can I check that a trust is registered?
The Registrar holds the entry for a registered trust. Your lawyer confirms what a search shows and who may search. Ask your lawyer to obtain proof of the entry for your file, and we keep a copy beside the deed.
Reporting and tax
Your home country decides how you are taxed. The 2004 text of the Act does not set out a tax regime, and the rules for non-resident entities sit in other laws, which your lawyer reads for you.
Which international reporting rules apply to your trust is a point your tax adviser confirms, along with what to file at home.
Does a Marshall Islands trust report under CRS?
Whether the trustee or a bank reports under the Common Reporting Standard on your trust is a point your lawyer confirms for your case. Banks usually ask for self-certification forms for the trust at the start. Your tax adviser tells you what you file at home, and we work with them.
Does my residency change the reporting for a trust in the Marshall Islands?
Yes, your home country decides how it taxes you as settlor or beneficiary, and it may require you to report the trust. Your own tax adviser tells you what to file. Give the adviser the draft deed and the asset list.
Who do I ask about my own tax on a trust in the Marshall Islands?
Ask a tax adviser who knows your home country, and give them the draft deed. We do not give tax advice and do not promise any tax outcome. We send your adviser the same drafts we send you. Ask before you sign, not after.
Getting help
Tell us in plain words where you live, what you plan to transfer and who should benefit. Our reply sets out what we can do and what we need next.
Request a quote with a short note. You do not need every paper yet.
For the full picture, return to the islands trust overview or the jurisdictions hub.
How do I ask about a Marshall Islands trust?
Write to us with your country of residence, the assets you expect to transfer and what you want the trust to do. We reply with what we need next and a view on whether we can take the case. A short note is enough to begin.
Do you give legal or tax advice?
No. We coordinate the checks, the papers and the contact with the trustee and your advisers. Legal advice comes from your lawyer, and tax advice from your tax adviser. We send both of them the same drafts we send you.
What if another place suits me better?
We tell you early. The first review may show that another place fits your goal better than the Marshall Islands, or that you need no trust at all. Our jurisdictions hub lists the places we cover, each with the same kind of sourced facts, so you can compare them side by side.
Can I start an enquiry before I have all my papers?
Yes. A short message is enough to begin. Tell us where you live, what the trust would hold and who it is for, and we reply with the questions that matter. Identity and source-of-wealth documents are collected as the work moves on.