18 Nov Trust Administration
Did you know that a trust is ideal for ensuring your business’s continuity? Are you thinking of establishing a living (inter vivos) trust? What is important to know about trust administration in South Africa?
Find out more below.
- Firstly, it is necessary to define what a trust is. A trust is a legal entity that consists of a founder, trustee(s) and beneficiaries. The trustees are responsible for managing the trust’s assets for the benefit of the beneficiaries.
- The Trust Property Control Act, 57 of 1988 governs trusts.
- Who must administer the trust? A professional trustee should be appointed to administer the trust. It is recommended that you appoint at least one independent trustee. Trustees need to be honest and trustworthy people.
- How are trusts registered? Trusts have to be registered with the Master of the High Court in South Africa. A trust must have a trust deed that is lodged with the Master’s office, if it is an inter vivos trust.
- The trust deed contains all the essential details of the trust. The trust deed stipulates how the trust is to be administered, and the formalities that need to be followed.
- All trust assets have to be registered in the name of the trust.
- Note that if a trust is not established and administered properly, the trust (that has been established) might be regarded as a sham. It is imperative that trustees ensure proper trust administration.
- The trustees need to record all decisions that they make in a minute book. This book will help with potential dispute resolution.
As a highly experienced Trust Specialist, I look forward to meeting with you and explaining the necessity of trust administration. I will take you through the process of creating a living trust, and explain the importance of administering a trust properly. I will discuss the process of administering a trust in easy-to-understand layman’s terms. I am available to meet for one-on-one meetings with my clients.
DR MERVIN MESSIAS
JD (Juris Doctor) / BA, LLB (Wits) / TEP (Trust & Estate Practitioner)
Make an appointment with my Executive Assistant, Jutleth Mkhonza. Email email@example.com or call +27 (0) 11 783 0108.