Formalities in trust deeds that assist with proper administration
Category Industry News
JOHANNESBURG - A family trust is by its very nature an intimate part of the financial and personal lives of a family, but the estate planner often loses sight of the fact that the trust - represented by the trustees - and the estate planner are separate entities.
It is often the case that the estate planner is also a trustee, which results in the line between estate planner and trustees being blurred. The other trustees, who may be the estate planner’s spouse and children, may end up being ignored, or playing no active role in the administration of the trust.
It may also happen that the trust is drawn into the business dealings of the estate planner, a practice that tends to defeat the object for which the trust was established.
This often leaves courts, funders and other parties reluctant to deal with trusts except with caution.
Regardless of the type of trust, the main role of a trustee is to administer the trust assets in the best interest of the beneficiaries, while having the utmost regard for the provisions of the trust deed.
All decisions and actions taken by the trustees must be made with reference to the trust deed and the Trust Property Control Act.
Author: Business Report
