- There are two types of trusts
-an inter-vivos trust and
-a testamentary trust;
- An inter-vivos trust is created during the lifetime of the Founder;
- A testamentary trust is created in the will of the testator and comes into effect upon the death of the testator;
- A trust deed is concluded for both an inter vivos and a testamentary trust and stipulates how the trust is to operate;
- Assets are transferred into the trust and may include moveable, immoveable assets or interests in property;
- Trustees appointed in terms of the trust deed are responsible for the administration of the assets in terms of the provisions of the trust deed;
- Beneficiaries nominated in the trust deed will be entitled to the entitled to receive income and/or capital from the trust;
- Ownership of the trust assets vests in the Trustees BUT, it does not form part of their personal estates.
- Trust Debts are recovered from the Trust itself and not from the Trustees;
- A letter of authority is issued by the Master of the High Court appointing the Trustees in terms of the Trust Deed.
Inter Vivos Trust
An inter-vivos trust is created in terms of a trust deed, whereby the Founder, during his lifetime, transfers certain assets to the trustee.
A testamentary trust is created when the testator bequeaths certain assets to a trustee in his will to be administered in favour of nominated beneficiaries.
|Advantages of a Trust||Essentials of Trust|
Documents to be submitted to the Master in Creating a Trust
- A completed Acceptance of Trusteeship application form for each trustee (to be completed by the trustee);
- A completed Bond of Security if required by the Master for each trustee;
- The original trust deed or a copy thereof, certified by a Notary;
- proof of payment of R100 fee;
- An undertaking by an auditor, if applicable.