Trust Agreement Template for Qatar

A Trust Agreement creates a legal arrangement where someone (the trustee) manages assets or property on behalf of others (the beneficiaries) under Qatari law. These agreements are particularly common in family wealth planning, charitable foundations, and Islamic finance structures that need to comply with Sharia principles.

Under Qatar's Trust Law No. 9 of 2022, trust agreements must clearly specify the trustee's duties, beneficiary rights, and how assets will be managed. The agreement protects all parties by setting out investment rules, distribution schedules, and reporting requirements. Many Qatari businesses use trusts to protect company assets, manage succession planning, or structure employee benefit programs.

Trust Agreements become essential when you need to protect and manage assets for specific beneficiaries in Qatar. Common situations include setting up family wealth transfers that comply with both Sharia law and Qatar's Trust Law, structuring business succession plans, or establishing charitable foundations that serve community interests.

These agreements prove particularly valuable during major life transitions: passing business ownership to the next generation, creating educational funds for children, or managing property for family members who can't handle their own affairs. They're also crucial for companies setting up employee benefit schemes or real estate developers managing multiple investor interests under Qatar's property laws.

• Basic Family Trust: Manages generational wealth transfers and inheritance planning under Qatar's Trust Law, often structured to comply with both Sharia principles and local regulations
• Charitable Trust: Established for philanthropic purposes, supporting community initiatives while offering tax benefits under Qatari law
• Business Trust: Handles corporate succession planning and asset protection for Qatari companies, particularly useful for family businesses
• Real Estate Investment Trust: Manages property investments and development projects, structured to meet Qatar's property ownership rules
• Employee Benefit Trust: Administers company benefit programs, pension schemes, and profit-sharing arrangements for Qatar-based workforce

• Trustees: Legal professionals or trust companies licensed by the Qatar Financial Centre who manage assets and execute the trust's terms
• Settlors: Individuals or organizations who create the trust and transfer assets into it, often wealthy families or business owners
• Beneficiaries: People or entities who receive benefits from the trust, such as family members, charitable organizations, or employee groups
• Legal Advisors: Qatari lawyers who draft agreements, ensure Sharia compliance, and provide ongoing guidance
• Financial Institutions: Banks and investment firms that handle trust assets and provide financial services under QFC regulations

• Asset Details: List all properties, investments, or funds to be placed in trust, with clear documentation of ownership and value
• Beneficiary Information: Compile complete details of all beneficiaries, including their rights and distribution schedules
• Trustee Powers: Define specific authorities and limitations for trustees under Qatar's Trust Law and Sharia principles
• Compliance Requirements: Ensure alignment with QFC regulations and local legal frameworks
• Distribution Rules: Specify how and when assets or income will be distributed, including any conditions or restrictions
• Succession Planning: Include clear provisions for trustee replacement and trust termination procedures

• Trust Purpose: Clear statement of objectives and intended benefits, compliant with Qatar's Trust Law and Sharia principles
• Party Identification: Complete details of settlor, trustees, and beneficiaries with their respective roles and rights
• Asset Schedule: Detailed inventory of trust property with precise descriptions and values
• Distribution Terms: Specific rules for asset distribution, including timing and conditions
• Trustee Powers: Comprehensive list of authorized actions and limitations under QFC regulations
• Duration Clause: Trust period and termination conditions aligned with local law
• Governing Law: Explicit reference to Qatar law and relevant QFC regulations

Trust Agreements and Asset Purchase Agreements are both important legal tools in Qatar, but they serve distinctly different purposes. While a Trust Agreement creates an ongoing relationship for managing assets on behalf of beneficiaries, an Asset Purchase Agreement documents a one-time transfer of ownership.

• Duration and Purpose: Trust Agreements establish long-term asset management relationships, often spanning generations. Asset Purchase Agreements conclude once the sale transaction is complete.
• Party Relationships: Trust Agreements involve trustees managing assets for beneficiaries under Sharia-compliant terms. Asset Purchase Agreements simply transfer ownership between buyer and seller.
• Asset Purchase Agreement: Focuses on immediate transfer of specific assets for consideration, with clear payment terms and warranties.
• Legal Framework: Trust Agreements operate under Qatar's Trust Law and QFC regulations, while Asset Purchase Agreements follow standard commercial law principles.