An inter vivos trust must be registered at the office of the Master of the High Court whose jurisdiction includes the majority of the trust assets. If more than one Master of the High Court has jurisdiction over the trust assets, the Master of the High Court in the location where the trust was first registered shall have final authority. Once satisfied that the documents are in order, the Master of the High Court will issue Letters of Authority appointing the trustees indicated in the trust deed.
Please keep in mind that unless the Master of the High Court issues Letters of Authority, the potential trustees do not have the authority to serve as trustees. Do not engage in any commercial or legal activities until you have received the Letters of Authority from the Master of the High Court, since those transactions will be null and void.
It is critical that the initial donation (as specified in the trust deed) be made by the founder as soon as the trust is registered with the Master of the High Court. If this donation is not made, it is assumed that the trust does not exist.
In most circumstances, both the Trust Property Control Act and the trust deed compel the trustees to open a bank account. As soon as the trust is registered with the Master of the High Court, a bank account should be opened.
SARS requires all trusts to be registered as taxpayers. For each trust, an IT77TR form (Application for Registration as a Taxpayer or Change of Registered Particulars: Trust) must be completed. To register the trust for Income Tax, trustees must personally show themselves to SARS. SARS will normally accept the Main Trustee or the Representative Trustee to register the trust on behalf of the other trustees, but only if this has been authorized in writing by a particular decision that includes the words “Main Trustee” and “Representative Trustee.”
What are the three kinds of trust?
among the most popular types to consider are revocable trusts, irrevocable trusts, and asset protection trusts. Furthermore, these trusts provide long-term benefits that can help to improve your estate plan and successfully protect your assets.
In South Africa, how does a trust operate?
A trust is frequently described as a three-way legal relationship. A trust is a structure established by the founder to which property is transferred and which is then managed by trustees on behalf of one or more beneficiaries in line with the trust deed or will (as the case may be).
In South Africa, how is a trust taxed?
The trust is taxed at a fixed rate of 45% where it is taxable. Special trusts are taxed at a graduated rate ranging from 18% to 45%. (same as natural persons). Top Tip: Trusts are ineligible for any of the refunds set out in Section 6 of the Income Tax Act.
Can you take money out of a trust fund?
If you are the trustee, you may take funds from your own trust. You could withdraw money as you see appropriate or as needed because you have a stake in the trust and its assets. You can also transfer assets into and out of the trust.
