Inter Vivos Trusts in South Africa
In South Africa, there are basically three types of trusts. These are living trusts (in South Africa called inter vivos trusts), testamentary trusts and bewind trusts.
Testamentary trusts are created at the winding up of a deceased estate following a specific stipulation in the deceased person's will that a trust must be set up. Testamentary trusts are usually created to hold assets on behalf of minor children, since minor children can not in terms of South African law inherit assets freely (in the absence of a trust, assets from the deceased estate left to minor children are held in a state institution, the Guardian's Fund, and released to the children in adulthood or their parents or guardian must furnish security to the value of the inheritance). Bewind trusts are created as trading vehicles providing trustees with limited liability and certain tax advantages.
There are two types of living trusts in South Africa, namely vested trusts and discretionary trusts. In vested trusts, the benefits of the beneficiaries are set out in the trust deed, whereas in discretionary trusts the trustees have full discretion at all times as to how much and when each beneficiary is to benefit.
Read more about this topic: Trust Law
Famous quotes containing the words trusts, south and/or africa:
“No married woman ever trusts her husband absolutely, nor does she ever act as if she did trust him. Her utmost confidence is as wary as an American pickpocket’s confidence that the policeman on the beat will stay bought.”
—H.L. (Henry Lewis)
“We in the South were ready for reconciliation, to be accepted as equals, to rejoin the mainstream of American political life. This yearning for what might be called political redemption was a significant factor in my successful campaign.”
—Jimmy Carter (James Earl Carter, Jr.)
“There has never been in history another such culture as the Western civilization M a culture which has practiced the belief that the physical and social environment of man is subject to rational manipulation and that history is subject to the will and action of man; whereas central to the traditional cultures of the rivals of Western civilization, those of Africa and Asia, is a belief that it is environment that dominates man.”
—Ishmael Reed (b. 1938)