Trusts remain a valuable estate planning and asset protection tool, but they also carry ongoing compliance obligations. Many trustees assume that a dormant trust with no income, assets, or activity can simply be left alone. SARS has made it clear that inactivity does not remove a trust’s compliance obligations. With penalties now being imposed for outstanding trust returns, dormant trusts may be attracting more attention than their trustees realise.
“Externally, trustees cannot disagree. In the external sphere the Trust functions by virtue of its resolutions, which have to be supported by the full complement of the Trust body.” (Extract from judgment below) A recent Supreme Court of Appeal (SCA) judgment provides yet another reminder to tread carefully when contracting with trusts. Your agreements with
Contracting with Trusts – Is a Majority Resolution Valid? Read More »
“National Treasury, therefore, expects that if South Africa continues to make significant improvements in effectiveness and swiftly exits grey listing, it will have a limited impact on financial stability and costs of doing business with South Africa, particularly if South Africa moves speedily to get out of grey listing.” (National Treasury) South Africas grey listing
Trustees: Your New Duty to Report Beneficial Owners Read More »
“Love is grand. Divorce is a hundred grand.” (Anon) That’s a great scenario whilst the marriage prospers, but what happens on divorce? A recent High Court decision addressed one such scenario – Trusts may be formed for a variety of reasons, and the purpose and structure of each trust will inform the choice of trustees.
Trusts on Divorce: Are You Stuck with an Ex-Spouse as Trustee? Read More »
“…where there is disharmony, the essential test is whether it imperils the Trust estate or its proper administration” (extract from judgment below) Trustees are of course supposed to work together to protect and further the interests of their trust and its beneficiaries, but the fact is that on occasion serious disputes can and do arise.
“Animosity and difference of opinion are not sufficient to have a trustee removed from office and/or for the majority of trustees to unilaterally force another to vacate his/her office…” (Extract from judgment below) When family infighting impacts a family trust, an early casualty is often the relationship between the appointed trustees and beneficiaries, and/or between
Trustees at War: The Removal Remedy and Its Limits Read More »
Your debtor owes you a fortune, but when his estate is sequestrated there is nothing in his own name. However you find out that he is trustee of a wealthy family trust with lots of assets that you think are really his – can you recover from his trust? The answer is yes, you can,
Suing an Insolvent Debtor – Can You Recover from his Trust? Read More »
