How To Deregister A Trust In South Africa
The Trust Property Control Act 57 of 1998 does not contain any language requiring the deregistration of trusts. Deregistration is a procedure used internally by administrative staff to simplify trust file management. The Master must receive proof that a Trust has been cancelled in addition to registering all Trusts.
The procedure for canceling a trust
The following extra documents must be submitted with a formal application by the trustees to the Master:
The original, signed resolution by the Trustees ending the Trust, mentioning whether it was active or inactive, as well as whether a bank account had been opened in the Trust’s name and, if so, that it had been closed.
Bank statement from the Trust showing a balance of zero, the last statement issued before the account was closed, or a letter from the bank attesting to the account’s closure;
Evidence that all recipients of benefits have been confirmed to have done so; and
An affidavit from the Trustees attesting to the complete asset divestiture of the Trust
What follows deregistration
The Master will confirm the deregistration of the Trust upon receipt of the paperwork and will let the Trustees know his file has been closed. The Master will especially draw the Trustees’ attention to Section 17 of the Trust Property Control Act 57 of 1998, which stipulates the following:
“A Trustee shall not delete any document which is owned by the Master without the Master’s written approval.”acts as evidence of the use of Trust property for investment, custody, control, administration, alienation, or distribution prior to the lapse of five years following the termination of a Trust.
Although the procedure appears straightforward on paper, in reality, the Master may give the Trustees additional instructions to ensure that all necessary processes were followed.acts as evidence of the use of Trust property for investment, custody, control, administration, alienation, or distribution prior to the lapse of five years following the termination of a Trust.
How can one dissolve a trust?
A trust may come to an end by operation of law, by the accomplishment of the trust’s goals, as a result of the destruction of trust property, or as a result of the beneficiary’s renunciation of the trust. What transpires after a trust is dissolved? The trust must be deregistered by the Master.
Can a trustee dissolve a trust?
Some trusts expire by default when a certain event occurs, as when a beneficiary reaches inheritance age or when a life tenant passes away. Other trusts, like discretionary trusts, typically come to an end when the trustees use their authority to terminate the trust and distribute all the assets.
When is it impossible to dissolve a trust?
In terms of achieving its declared goal, the trust has achieved its goal. The beneficiaries are all no longer alive. The trust document gives the trustees the power to deregister the trust at their discretion and for any cause.
A family trust gets dissolved when?
A family trust expires automatically 80 years after the trust deed’s or another specified date.
