How to form a trust

How do I form a trust?

If it wasn't for the Master of the High Court, it would be easy. Here's how it's done (you can follow the links for more information) -

Setting up a family trust is not always easy.

This article briefly explains what to do and what to avoid when forming a family trust.

First thing is to decide on who will be the trustees. (Trustees are individuals or members of a board given control or powers of administration of property in trust with a legal obligation to administer it solely for the purposes specified). It should always be you and an independent professional trustee (accountant or attorney). Independent means not related to you or the beneficiaries. You only need those two, but a third trustee would often be your spouse.

Then decide on the beneficiaries. Always you, usually your spouse and your relations within the first degree of consanguinity (parents, siblings, children) and the decendents of any beneficiary.

The next important part of setting up a trust is the trust deed. This is a contract between a donor (usually you) and the trustees. There are very few specialists in this country who can write a good trust deed (I only know three, myselfJulian Ware and Costa Divaris). I see a lot of copy and paste rubbish and that can only be bad news further down the line.

Then you fill in and sign a few forms, pay a fee of R250 and submit the whole lot to one of the Master's offices. If you're lucky, about six weeks later, you'll receive your Letters of Authority by Registered Post. If you're unlucky, you'll get a rejection letter and have to start all over.

If you're in a hurry, best is to buy a shelf trust and be up and running immediately. Harbour & Associates offer a range of ready-to-buy shelf trusts which will allow you to bypass all the above legal and administrative processes.


Derek Springett, CEO of HArbour & AssociatesNeed expert advice about setting up a trust?

Contact us today or set up a free meeting with our CEO, Derek Springett to discuss your options.
You can also visit our online store to see our list of shelf trusts for sale.


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South African Institute of Chartered Accountants. Designation CA(SA) Engineering Council of South Africa. Designation Pr(Eng)Independent Regulatory Board for Auditors. Designation RA<    Internationally Accredited Financial MediatorsMember of MENSA, the High IQ Society

 

 

 

Contact Details

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Tumi : tumi@harbourassociates.co.za

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