What Are Some Of The Legal Requirements Of An Inter-Vivos Trust In South Africa?

Establishing an inter-vivos trust in South Africa requires adherence to specific formalities and registration processes. Below are the legal requirements and documentation involved in creating and registering an inter-vivos trust.

Trust Deed: The trust deed is a critical document that sets out the terms and conditions of the inter-vivos trust. It outlines the rights, duties, and powers of the trustees, beneficiaries, and other relevant parties. The trust deed must comply with the requirements of the Trust Property Control Act (TPCA)

Trustees: An inter-vivos trust must have at least one trustee, but it is advisable to have multiple trustees to ensure effective administration. Trustees play a vital role in managing the trust’s affairs and acting in the best interests of the beneficiaries. It is important to appoint competent and trustworthy individuals as trustees, as they have fiduciary duties and legal obligations.

Trust Property: The trust must have identifiable and properly transferred trust property. The trust property may consist of various assets, such as money, real estate, investments, or movable assets.

Registration with the Master of the High Court: Inter-vivos trusts must be registered with the Master of the High Court in the jurisdiction where the trust’s main administration takes place. The registration process involves submitting various documents to the Master’s Office,