'Trust' means the arrangement through which the assets in property of the founder is transferred/donated or bequeathed to the trust on behalf of -

(a) another person, the trustee, in whole or in part, to be administered or disposed of according to the provisions of the trust instrument for the benefit of the person or class of persons designated in the trust instrument or for the achievement of the object stated in the trust instrument; or 

(b) the beneficiaries designated in the trust instrument, which property is placed under the control of another person, the trustee, to be administered or disposed of according to the provisions of the trust instrument for the benefit of the person or class of persons designated in the trust instrument or for the achievement of the object stated in the trust instrument.

There are two types of Trusts

1.  Living Trusts (inter vivos trusts)

• Created during the donor's lifetime
• Created for tax planning
• The donor transfer assets to the Trust: 

1.  Through donation of assets
2.  Through a sale at a market value by making use of a loan account, if no transfer of funds took place as a payment. 
3.  Through a sale at a less market value by making use of a loan account , if no transfer of funds took place as a payment.

2. Testamentary Trusts (mortis causa)

• Established in terms of a persons will. 
• Comes into operation when the creator/founder of the trust passes away.
• Can be created voluntarily as well. It is regularly used to provide for minor children and / or the spouse after a person's death . The trustees will manage the assets  that were bequeathed to the Trust on behalf of the spouse and children to ensure that adequate funds are set aside to provide for  their needs and living expenses. 

• Trusts are formed to protect the assets held by the trust, from matrimonial system.
• To protect assets from creditors.
• To protect assets from tax.
• To provide for minor children / or the spouse after a person's death .
• To manage the assets  that were bequeathed to the Trust on behalf of the spouse and children to ensure that adequate funds are set aside to provide for their needs and living expenses.

• Beneficiaries with vested rights are entitled to the amount and have a legal right to claim it.
• Beneficiaries with discretionary rights are entitled to the amount when the trustees decides to distribute (only have contingent rights to the amounts).

Forming/creation and administration of trusts is regulated by the Trust Property Control Act 57 of 1988. 

1. Living Trusts (Inter Vivos Trusts) must be registered with the Master of the High Court of jurisdiction where the trust has greatest asset.

If more than one Master has jurisdiction over the trust assets, the Masters office which first registered the trust have jurisdiction over the trust assets.

The following documents must be lodged in order to enable the Master to register an inter vivo trust and to issue letters of authority to the nominated trustee(s).

1. Original trust deed or notarial certified copy thereof.
2. Proof of payment of the applicable fee , for registration of a new Trust. There are no costs involved in amending an existing
3. Trust Application form (J401)
4. Completed Acceptance of Trusteeship (J417) and Acceptance of Auditor Application (J405) forms.
5. Beneficiary Declaration (J450)
6. Trustee(s) Identification – Certified copies of ID / Passport / Organization Proof of Registration (CK1)
7. Trustee(s) Representative Identification – Certified copies of ID or Passport (Mandatory for Organization Trustee(s))
8. Beneficiaries Identification – Certified Copies of ID or Birth Certificates / Passport /Organization (CKI)
9. Bond of security by the trustees - form J344
10. Final Certified Court Order (if applicable)

2. Creating testamentary trusts (mortis causa).

There is no application fee for registering a testamentary trust as the deceased's Will serve as the trust document, the following documents need to be lodged with the Master of the High Court; 

1.  Trust Application Form (J401)
2. Completed Acceptance of Trusteeship (J417) and Acceptance of Auditor Application (J405) forms.
3. Beneficiary Declaration (J450).

For the testamentary trust the completed acceptance of trusteeship and the photo page of the trustees ID document by each trustee and all the requirements listed on form JM21 must be lodged.

On receipt of all the required documents, the Master may issue the nominated trustees with letters of authority to administer the trust.

No trustee may act as such without the written authority of the Master. Trustees should keep accurate financial statements to comply with their fiduciary obligations to the beneficiaries. The Master may request the trustees to account for the administration of the trust.

Contact Us Now! ,If you want to create your testamentary trust or living trust.