REGISTRATION AND ADMINISTRATION OF TRUSTS IN SOUTH AFRICA
Your Preferred Legal Partner In The Drafting And Administration Of Trusts
WHAT DOES THE DRAFTING AND ADMINISTRATION OF TRUSTS ENTAIL IN TERMS OF THE SOUTH AFRICAN LAW?
What is a Trust?
Trusts in South Africa are governed by the Trust Property Control Act 1988. A trust is defined as an arrangement that allows a person to hold assets (without owning them) for the benefit of the trust beneficiaries. The important factor of a trust deed focuses on the transfer of ownership and the control of the trust assets from the donor/founder to one or more trustees who hold the trust assets not in their personal capacities but for the benefit of the trust beneficiaries. A Trust is thus a legal entity owning property and other assets. It is a legal agreement stipulating how assets are managed and distributed.
A trust’s constitutional legal document is a trust deed. The trust deed stipulates the framework in which the trust may operate, including its powers and limitations. Trust deeds are registered with the Master of the High Court in the appropriate jurisdiction where the trust assets are situated. Trustees may only act once the Master of the High Court has issued letters of authority allowing them to act.
What are the Advantages of registering a Trust?
Protects personal and business assets.
Creditors are not able to get to your assets. You can freely conduct business without risking your family’s future or wealth.
Creditors cannot get to your assets on your death to settle an unpaid debt.
With a trust you are also saving on estate duty.
Tax benefits.
WHAT ARE THE MAIN TYPES OF TRUSTS
IN SOUTH AFRICA?
There are two main types of trusts in South Africa:
1) Inter-Vivos Trust (Living Trust)
Living persons create an inter-vivos trust. It is an agreement between the founder and the trustee(s). Where the location of the trust assets is the greatest, the Master who has jurisdiction over this area registers the trust. In the instance of more than one Master, the office where the trust was initially registered will have jurisdiction. Certain documents need to be lodged before the Master will register an inter-vivos trust and issue letters of authority to the trustees.
2) Testamentary Trust (Created in terms of a valid will)
A valid will of a deceased person forms a testamentary trust and comes into effect after his/her death. The following needs to be lodged with the Master of the High Court as per the Department of Justice and Constitutional Development’s requirements.
- Application form.
- Completed Acceptance of Trusteeship and Acceptance of Auditor Application forms.
- Beneficiary Declaration.
- For the testamentary trust, each trustee completes an acceptance of trusteeship and the photo page of the trustees’ ID document and all the requirements have to be lodged.
On receipt of documents, the Master issues the trustees with an authorisation letter to administer the trust.
INSIST ON DEALING WITH EXPERIENCED TRUST ATTORNEYS
PM Attorneys is one of the leading trust law firms in Pretoria, practicing from its offices in Centurion. Our specialist trust lawyers and Trust Law firm has successfully been operating since 2008. PM Attorneys’ trust experts employ a formidable litigation team with extensive experience in resolving trust-related matters and that specialises in the registration and administration of trusts across South Africa. We advise on trust tax issues, conduct trust litigation, and provide trust opinions for litigation matters. Our team further specialises in resolving disputes amongst trustees and/or beneficiaries.. We assist in providing analysis, interpretation, and beneficial assistance to achieve maximum benefit, avoiding unpleasant disputes and avoiding unfavourable and/or unfair consequences in divorce matters. Be sure to entrust your trust administration to our expert legal team.
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PM Attorneys boast extensive experience, knowledge and years in practice, making us the preferred legal partner in South African Law. Contact us for professional, expert legal advice and practical legal resolutions to your trust administration matters.
