How to Register A Trust In South Africa
A trust is a legal arrangement in which the Founder and Trustees hold property on behalf of one or more beneficiaries while acting as the property’s nominal owners. Keep a valid legal structure in mind when thinking about creating a Trust. It is essential to comprehend the Trust’s purpose, beneficiary rights, and trustee obligations.
Before you decide to register a trust, you should know the types of trust available to be able to choose the one that suits your objective.
Types of Trusts
- Testamentary Trusts: Testamentary trusts are established in accordance with the directions in a person’s last will and testament and come into existence following the testator’s demise. To keep their beneficiaries out of court, most people prefer a living trust.
- Living Trusts: Discretionary and vested trusts are two types of living trusts. In contrast to vested trusts, where the trustee does not have absolute discretion, discretionary trusts allow trustees to decide how to distribute each beneficiary’s share of the trust’s income and capital. Also revocable or irrevocable are living trusts.
How To Choose A Trust
In South Africa, there are many options available when it comes to establishing a trust (Family Trusts, Charitable Trusts, and Umbrella Trusts etc.).
Create the Trust of your choice
You must list your trustees, beneficiaries, and funding for the trust in order to comply with this. You can decide on the form of trust you will like to create. Whether you prefer a revocable trust or an irrevocable one
Revocable Trust: In revocable trusts, specific assets may even be removed from the trust or the trust entirely canceled, amended, or modified in any way.
Irrevocable Trust: The assets contained in an irrevocable trust belong to the trust and are not subject to your control because the trust cannot be amended. A revocable Trust is recommended in general.
What Do You Need To Register A Trust
A covering letter for the High Court Trust Registration and Amendment form addressed to the Master (J401)
Two authentic, handwritten trust deeds
Evidence of the Master of the High Court’s fee being paid
The fee-paying Annexure B form for the Master of the High Court
A statement from the trustees
An affidavit made under oath and signed by the independent trustee
A certified copy of every trustee’s identity document
Trustees’ acceptances of their positions as trustees (J417) are included, as well as a list of the nominees’ credentials and trust management experience.
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Who Is A Trustee
A trustee is tasked with overseeing the Trust and acting in the beneficiaries’ best interests. A second trustee must be named even though you want to be the only trustee of the trust. The trustees’ authority, responsibility, and skill levels must be expressly defined. The Trust deed must include a clear description of the trustees’ discretionary powers, other responsibilities, and compensation.
Who Registers Trusts in South Africa.
A trust is registered by the Master of High Courts. To register, you must pay R250 to the High Court’s e-Master.
How much does it cost to register a trust In South Africa?
It can cost as little as R7000 or as much as R20, 000 to establish a trust, draft a trust deed, and register it in South Africa.
A trust is a legal arrangement in which the Founder and Trustees hold property on behalf of one or more beneficiaries. In South Africa, there are many options available when it comes to establishing a trust (Family Trusts, Charitable trusts, Umbrella Trusts etc.). Registering a trust can cost as little as R7000 or as much as R20, 000 to establish a trust, draft a trust deed, and register it in South Africa. To register, you must pay R250 to the Master of High Court’s e-Master.
