Trusts and Wills

Trusts can be created through different means and for different purposes although this article will primarily focus on Trusts created by means of a Will. This is called a Testamentary Trust.

The trustee of a trust deals with the administration and control of the trust assets. The trust assets are normally allocated to the trust beneficiaries through a Will. Usually the testator will nominate the trustees in their Will.

Requirements for a valid trust:

• The intention to have created a trust needs to be clear;
• It further needs to be clear who the trust beneficiaries are as well as what the trust assets are;
• If the trust is a charitable trust, there needs to be a trust objective which should be clearly stated and lawful.

A trustee is only able to act as a trustee after they have been authorised by the Master of the High Court in order to do so. A trustee is required to act with diligence, care, and a level of skill that is reasonably expected from someone who is dealing with the affairs of another person.

There are many ways in which a trust can be terminated and some of them include:

• Once the trust objective has been completed, the trust will be terminated;
• If the trust assets were destroyed through no fault of the trustee, the trust will be terminated;
• The trust can be terminated by court order;
• If the trustee and trust beneficiaries come to an agreement to terminate the trust, the trust will be terminated.

It is important to have your will drafted by a professional.
Contact us for further advice.