The Master of the High Court recently published a Circular which changes the way in which Trust Administration is handled by the Master’s Office. Some of the most important implications of the changed procedures are:
Independent Trustees:
- Updated requirements and amended forms to be completed by Independent Trustees
- The Master must, when a Trust is registered for the first time, and is a “family business unit”, consider appointing an Independent Trustee
Appointment of Trustees:
- Identity of Trustees are to be confirmed with certified copies of Identity Documents
- New rules prescribed for the way in which a corporate Trustee is replaced
- Confirmation that the Master may refuse the appointment of a Trustee only under certain circumstances
- In case of a change in Trustees, the Letters of Authority are to be returned to the Master
- Before dealing with Trust Assets, Trustees need to be authorized to act as Trustees in terms of a Letter of Authority issued by the Master
Resignation of Trustees:
- If the Trust Deed makes provision for the resignation of a Trustee, those procedures are to be followed
- If no provision is made for resignation, notice should be given to the Master and Beneficiaries with vested rights in terms of Sec 21 of the Trust Property Control Act, 1988.
Should you need assistance with any Trust related administration, or would like to discuss what the impact of the changes would be in respect of a specific Trust Deed, please contact our Trust Administration Department today.
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)