The INITIAL trustees are appointed by the donor and must accept their appointment by signing the relevant documentation.

Trustees have a huge obligation as they should ensure that the trust is dealt with in accordance with the trust deed and to the benefit of the beneficiaries.

It is advised that at least two INDEPENDENT trustees, not related to the beneficiaries, should be appointed.

One of the trustees can be you (the donor), but if you are the only trustee, the whole purpose thereof is void as this structure will simply be seen as an extension of you.

Section 3(d) of the Estate Duty Act indicates that any assets which you were competent to dispose of immediately prior to your death should be included in your estate.

This can be avoided should you have at least two INDEPENDENT trustees appointed.

Trustees can resign at any stage by simply tendering their resignation to the Master of the High Court.

A new trustee must then be appointed in accordance with the trust deed.

Great care should be taken when trustees are appointed as you (the donor) are effectively relinquishing control of your assets to the trust which is now managed by the trustees.

SOURCES :

Cronje & Cronje

Business Partners