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    A trust is a legal relationship between a person (founder) and another (trustee) it is Created During the founder's lifetime (inter vivos) or in terms of a will (trust mortis causa) - For the benefit of 3rd persons (beneficiaries) duties Skill, care and diligence separate trust a / c Bookkeeping - which property held in trust Show trust property Keep records 5 years from termination Act in good faith Give effect Exercise independent discretion Invest

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    A trust is a legal relationship between a person (founder) and another (trustee) it is Created During the founder's lifetime (inter vivos) or in terms of a will (trust mortis causa) - For the benefit of 3rd persons (beneficiaries) duties Skill, care and diligence separate trust a / c Bookkeeping - which property held in trust Show trust property Keep records 5 years from termination Act in good faith Give effect Exercise independent discretion Invest

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    Attribution Non-Commercial (BY-NC)
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    5 views6 pages

    14 - Trusts (Compatibility Mode)

    Uploaded by

    studentofbc
    A trust is a legal relationship between a person (founder) and another (trustee) it is Created During the founder's lifetime (inter vivos) or in terms of a will (trust mortis causa) - For the benefit of 3rd persons (beneficiaries) duties Skill, care and diligence separate trust a / c Bookkeeping - which property held in trust Show trust property Keep records 5 years from termination Act in good faith Give effect Exercise independent discretion Invest

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    of 6

    Chapter 17

    Business trusts

    Meaning
    Legal relationship
    Created by a person (founder) Through placing assets under control of another (trustee) During the founders lifetime (inter vivos) or in terms of a will (trust mortis causa) For the benefit of 3rd persons (beneficiaries)

    Types
    Ownership & control trustee Bewind
    Beneficiaries ownership Trustee controls

    Duties
    Skill, care & diligence Separate trust a/c Bookkeeping which property held in trust Show trust property Request of Master account to Master Keep records 5 years from termination Act in good faith Give effect Exercise independent discretion Invest property productively Account Act w/in powers Remuneration to which entitled

    Powers & rights


    Powers: trustee
    Trust deed Can only do what deed stipulates

    Rights: beneficiaries
    Managed obo beneficiaries (exist / not yet born) Rights can be ceded if allowed

    Business / trading trusts


    Benefits Limited liability
    Trust not separate legal person, but debts payable from trust estate

    Continued existence Limited regulatory duties


    E.g. no duty of disclosure

    Participation by legal persons Flexibility

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