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.