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About Trusts


Do you understand the concept of a “trust”? Are you aware of the benefits and protection that a trust can offer to you and your dependants?

A trust is a legal entity with its own distinct identity. It may acquire and hold property, shares and other such assets in the interests, and for the benefit, of its beneficiaries, the people for whom

the trust was created.

Trusts are administered in terms of the Trust Property Control Act, and formed and governed in terms of a written agreement between Trustees and the Founder (or Settlor), known as the

‘Trust Deed’.

A trust has its own contractual capacity and it may acquire and sell property, it may acquire shares in a company, or acquire and dispose of any other assets.

Why should you set up a Trust?

Protection of Assets

A trust entitles you, as a beneficiary, to the use and enjoyment of its assets without personally owning the assets. As the assets are separate from your personal estate, the trust may protect

the trust assets from creditors’ claims against you personally subject to the condition that the trust has not signed surety on your behalf.

Succession Planning

As a trust may survive your death, or that of the trustees and/or beneficiaries, the use of a trust provides succession of interests in property as it may continue to exist for an indefinite period.

Depending on the circumstances, the process of winding up a deceased estate may endure for a period of six months to more than a year. In the event that a trust owns the assets, the lengthy

procedure is avoided as it simply allows for the transfer of the use and enjoyment of assets to surviving beneficiaries.

Furthermore, the trust assets will not be subject to transfer fees, estate duty, executor’s remuneration and other such expenses, as more fully explained below.

A trust therefore facilitates an efficient transfer of rights and expedites the redistribution of assets to beneficiaries at a fraction of the cost of deceased estate administration.

Benefits on Death

By acquiring assets in a trust, the value of your personal estate is reduced. This implies that any growth in the trust’s assets is excluded from your estate in the event of your death. This

reduces your estate’s capital gains tax (CGT) and estate duty exposure, and eliminates executor’s fees in respect of such assets.

Please note:

If your Will leaves your farm to your children in equal shares, there could be complications. In terms of the Subdivision of Agricultural Land Act, there are restrictions when it comes to splitting

up agricultural land. Leaving the farm to a Trust solves this problem, as the profits of the operation could be paid out in equal shares.

The trustee administers funds in cases where the dependant cannot do so (for example as a result of a physical or mental handicap) and avoids challenges or problems that are commonly

associated with the Guardian Fund.


CGT is levied on natural and juristic persons when an asset is alienated for value. In the event of death, CGT becomes applicable as you are deemed to have sold all your assets to your

deceased estate. Further, on death a further tax imposed is Estate Duty which is currently levied at the rate of 20% of the value of any assets you have in excess of 2,5 million. However, this

dilemma in both instances can be addressed by simply holding the assets in a trust, as it is structured to survive death.

An executor is a person that attends to the administration and winding up of a deceased estate, who is entitled to a fee of 3.5 % of the gross value of the estate plus 6% of its income.

Protection of Minors

If you pass away and a Testamentary Trust has not been provided for in your Will and your children are under the age of 18, their inheritance may be reduced to cash and the proceeds paid

into the Guardian’s Fund. These funds are not invested in growth investments and may at times be difficult for your heirs to access.

South African law does not allow persons under the age of 18 to inherit directly. This implies that your assets might not be distributed in accordance with your wishes, as it will be sold and the

proceeds thereof will be held by the Guardians Fund until your young loved ones reach the age of majority. The solution to this problem is to have all your assets held by a trust, which will be

managed by your appointed trustees in the interest of the minors.



In order to accommodate clients countrywide, we have simplified the entire process for your convenience into just a few simple steps.

1. Complete the online form or send us a request via email to  and we will send you an information form in MS Word format.

2. Once we receive your information, we will prepare your draft trust deed and supporting documentation, which we will forward to you via email for perusal, together with our Invoice.

3. Upon receipt of your confirmation that the draft documents are in order, together your proof of payment, we will email your final documents to you together with advice for signature.

4. Once your documents are signed, you will need to fax copies, or scan and email them, to us to confirm that the documents are correctly signed, together with copies of the trustees’ identity

documents and proof of address.

5. We will then attend to payment of the Master’s fee.

6. Thereafter we will furnish you with proof of payment of the Master’s fee, a cover letter to the Master of the High Court and their relevant contact details for you to submit your documents to

the Master. Once your trust is registered, the Master will furnish you with a Letter of Authority confirming registration of your trust.

Alternatively, for an additional nominal fee, you may send the original signed documents to us together with your supporting documents via speed services, overnight mail or counter-to-

counter mail. Upon receipt of your original signed documents, we will compile your documents and lodge them with the Master of the High Court for registration. We will confirm

registration via email and the original Letter of Authority will be delivered to you via registered post in due course, upon receipt thereof from the Master, which usually takes approximately

3 to 4 weeks.

Tel: 039 695 0160  Email: