A trust is an arrangement that allows the trustees to hold assets (without owning them) for the benefit of the trust beneficiaries.

The key element of the trust arrangement is the transfer of ownership and control of the trust assets from the donor or founder to one or more trustees who hold the trust assets not in their personal capacities, but for the benefit of the trust beneficiaries.

Trusts are governed by the Trust Property Control Act 57 of 1988.  A trust’s constitutional document is a trust deed, which sets out the framework in which the trust must operate, including the duties and obligations of the trustees.

As a general rule, trusts must be registered with the Master of the High Court in the relevant jurisdiction where the trust’s assets are situated.  Furthermore, a trust has to have it’s own bank account.

The benefits associated with the application of a trust can, however, only be legitimately attained if the trust is managed effectively by the trustees in line with prevailing legislation and the trust deed.

Many people do not understand the true nature of trusts, what they mean and what they were intended for.  This leads to reckless administration by trustees who stand the risk of landing up in court.

Wiese & Wiese Attorneys and Cost Consultants take your trust seriously.  Call on us for experienced and specialist advice.