Trust Administration
Trustees are Responsible for Administration
As trustee, you act in a fiduciary capacity for the benefit of beneficiaries. Your primary role is therefore to act independently according to the terms of the trust deed and in the best interest of beneficiaries. The essence of your duty as trustee is underpinned by the governance and administration of the trust in accordance with the Trust Property Control Act and the specific requirements of the trust deed. Our objective, as Trust Administrator, is to provide the trustees with the tools to ensure that all aspects of good governance and administration have been addressed and are up to date.
The Validity of a Trust Rests on Administration
A trust is valid if it has been administered under the provisions of its deed of trust and statutory regulations for trusts in South Africa. The validity of a trust is tested when there is an attack by creditors, SARS or even by a beneficiary to the trust.
Without documented records to demonstrate how trustees have adhered to the Trust Property Control Act, the Income Tax Act, The Master of the High Court beneficial ownership reporting requirements and the trust deed itself, a trust may be found to be invalid. An invalid trust (commonly referred to as a sham trust or an alter ego of the trustee or founder) has no legal standing.
The validity of a trust rests on a system of administration that caters for the specific governance and compliance requirements of the trust.
Suite of Services for Administration
BDO offers a suite of services outlined below to help trustees meet their administrative and fiduciary responsibilities.