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Marshall Islands trust law and key features
Marshall Islands trust law rests on the Trust Act of 1994, part of Title 50 of the Revised Code. This page lists the rules of the Act, such as the time limit, registration and the creditor test, with its source and date, and your lawyer confirms how each applies to your deed.
Reviewed by a senior trust administrator, updated
The legal frame at a glance
What the law provides, with the source number for each item.
Key facts
- 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 Act provides for a protector, and the deed sets the protector's powers.
- The trustee acts only within the terms of the deed.
- The Registrar holds the register of trusts under Part V.
- Your lawyer confirms how the Act treats beneficiaries who live abroad.
The governing law
The core statute is the Trust Act of 1994, which forms Title 50, Chapter 1 of the Marshall Islands Revised Code. It covers how a trust is formed, run, registered and challenged.
Sources and review dates are listed below.
Your lawyer confirms how the Act treats beneficiaries who do not live in the islands.
A deed names its governing law. Your lawyer decides with you whether that law should be the Marshall Islands Act or another.
Who may act as trustee
The Act sets duties for a trustee, and your lawyer reads them against your deed. Whether it requires a resident trustee, or a particular type of company, is a point your lawyer confirms for your case.
We name a local trust company as trustee and tell you which company in writing before you sign. Our part is the checks, the papers and the contact with your lawyer.
You can choose people for other roles. A protector, an investment adviser you appoint, or a co-trustee elsewhere may be possible, subject to the deed and to advice from a law firm qualified in the islands.
Features the law allows
The points below are drafting choices your lawyer may consider. Each one is a tool, not a result we promise.
| Provision | Topic |
|---|---|
| s.105 | Foreign inheritance rules and the transfer to the trust |
| s.108 (2004 text) | Time limit of 100 years, charitable trusts excepted |
| Part V | Registration with the Registrar |
| s.145 | Creditor test for a transfer made to defraud |
| s.168 and s.169 | Non-resident beneficiaries and confidentiality |
Source: FAOLEX copy of the Marshall Islands Revised Code, Trust Act (1994), 50 MIRC Chapter 1; accessed 2026-11-05.
Section 105 says that foreign inheritance rules, forced heirship among them, do not affect the transfer to the trust. Your lawyer checks how a court at home would treat that.
Section 145 puts the burden on the creditor. The creditor must prove that the trust was made with the principal intent to defraud.
Registration under Part V is by a trustee certificate with a notice of creation, or by a copy of the trust instrument.
The 2004 text limits most trusts to 100 years, and charitable trusts are excepted. Your lawyer confirms how it applies to your deed.
Limits and requirements
The features come with conditions, and a structure that ignores them can fail. The main points your lawyer raises are these.
- Time limit. The 100-year limit in the 2004 text matters for family plans that run over many generations.
- Timing of transfers. How the timing of a transfer relates to an existing or expected claim is a point counsel examines under the creditor sections.
- Your home courts. A court at home may treat you as still owning assets you control, whatever the island rules say.
- Records and conduct. The trustee must act under the deed in practice, with real meetings and resolutions.
- Confidentiality and reporting. Your lawyer confirms how the rules on both apply to your deed.
We never describe a trust as making assets untouchable. The Act gives your lawyer rules to work with, and outcomes depend on facts and on courts we do not control.
The formation steps and documents show where these checks happen during set-up.
Sources and review dates
Every statutory point on this page comes from the Trust Act as published on FAOLEX.
Practical questions about running the trust are on our plain-answers page. For the overview, return to the main guide to the islands.
For what each part costs, see the breakdown of set-up and yearly charges. Our page on wealth structuring and asset protection explains our approach in general.
Frequently asked questions
Which law governs a trust in the Marshall Islands?
The 1994 Trust Act governs a Marshall Islands trust. It forms Title 50, Chapter 1 of the Revised Code. Our points follow the 2004 edition, and the Act also provides for registration of the trust with the Registrar. Your lawyer confirms how it applies to your deed.
Who may act as trustee in the Marshall Islands?
Whether the Act demands a resident trustee or a certain kind of company is a point your lawyer confirms before any deed is signed. No trustee is named yet; a local trust company is proposed in writing before you sign, and your lawyer reads the proposal first.
Can a trust in the Marshall Islands have a protector?
The Act mentions a protector. The deed can create the role and set its powers, such as consenting to distributions or replacing the trustee. Your lawyer advises who holds it, since a protector tied closely to the settlor can weaken the structure.