A trust is defined in the Law as a legal arrangement pursuant to which a settlor transfers its patrimonial rights to a trustee for the trustee to manage or dispose of in its own name, in the interest of the beneficiary, which is in line with the basic concept of trusts in common‑law jurisdictions.

Any individual or entity with legal personality may be a beneficiary, as well as any descendants of a certain existing individual. A settlor may also be a beneficiary, as well as trustees (who may not be the sole beneficiaries), whereas purpose or charitable trusts are not permitted.

Trusts may be created for a specified or unspecified term and do not have legal personality. A trustee is the legal owner of the assets, which shall remain autonomous and subject to separate accounting: the trust’s assets do not answer for the trustee’s own liabilities, including in case of bankruptcy or winding up, and are not part of the trustee’s estate in case of death. By default, a beneficiary is entitled to the economic benefit of the management or disposition of the trust’s assets, although the trust instrument may regulate differently.

Only a limited number of entities may act as trustee, including Macau‑licensed credit and financial institutions, insurance companies and pension fund‑management companies. Special legislation may authorise other entities to act as a trustee.