Trust Law

A trust can be defined as an arrangement whereby property, that is real, tangible or intangible, is managed by one person/s or an organisation for the benefit of another.

A trust is typically created by the Donor, who entrusts some or all of his assets to people of his choice (the Trustees). The Trustees are then able to hold a legal title to the trust property but they are obliged to hold the property for the benefit of one or more individuals or organisations (the Beneficiary). Such a Beneficiary is specified by the Donor.

Other than being governed by the Trust Property Control Act of 1988, the trust is furthermore regulated by terms and conditions contained within the trust document itself. These are usually presented in writing and can be set out in the format of a Deed. The trustee is obliged to administer the trust in accordance with both the terms of the trust document and the prevailing law.

Listed below are a few advantages of having a trust. If you feel that this could prove beneficial to you, do not hesitate to contact us in this regard.

• You can protect your assets. It is important to remember that a beneficiary cannot sell a right in a trust. Additionally, if the beneficiary becomes insolvent, or if you, as the donor, become insolvent, the trust assets still remain protected.
• Trusts continue to pay out benefits to your dependants after you die. This guarantees that your beneficiaries will be able to receive an income while your estate is still frozen. 
• You will save on estate duties. The growth on assets is never subjected to estate duties as they belong to the trust.
• Lastly, a trust does not die. This means that a trust is not liable for taxes or costs, such as transfer duties, executor's fees, or conveyancing fees. Additionally, the trust does not pay Capital Gains Tax, provided that the asset is not sold.