MAKE ENQUIRY

BEWIND TRUSTS IN SOUTH AFRICA

WHAT IS A BEWIND TRUST?

A Bewind Trust is a unique type of trust structure commonly used in South Africa, designed to transfer ownership of assets to beneficiaries while assigning the management responsibilities to trustees. Unlike other trusts, where trustees hold both ownership and administrative roles, in a Bewind Trust, beneficiaries receive ownership of the trust assets, while trustees manage them. This arrangement offers benefits for estate planning, protecting assets for minors, and ensuring proper financial oversight on behalf of the beneficiaries.

GOVERNING LAWS FOR BEWIND TRUSTS IN SOUTH AFRICA

Bewind Trusts, like other trust structures in South Africa, are primarily governed by:

  1. The Trust Property Control Act, No. 57 of 1988 – This Act outlines the regulation of trust property and mandates the registration and control of all trust property.
  2. Common Law – The South African common law also applies to the creation, management, and termination of trusts, providing principles that trustees must follow to ensure fair and ethical management.
BEWIND TRUSTS

Additionally, the Income Tax Act and other relevant tax legislation may impact Bewind Trusts in terms of tax obligations and benefits.

Requirements for a Valid Bewind Trust

To establish a valid Bewind Trust, certain legal requirements must be met:

  1. Trust Deed – A legally binding trust deed must be drafted, clearly outlining the purpose, terms, and conditions of the Bewind Trust, as well as the roles and powers of trustees.
  2. Capacity – Both the founder (who creates the trust) and the trustees must have the legal capacity to enter into agreements.
  3. Defined Beneficiaries – Beneficiaries must be clearly specified in the trust deed, as they are entitled to ownership of the trust assets.
  4. Intention to Create a Trust – The founder must show a clear intention to create the Bewind Trust and transfer assets under its structure.

Documentation Required for Bewind Trust Registration

To officially register a Bewind Trust, several documents are required, including:

  1. Trust Deed – This central document outlines all terms, roles, and responsibilities within the trust.
  2. Identification Documents – Certified copies of ID documents for the founder, trustees, and beneficiaries.
  3. Letters of Authority – Issued by the Master of the High Court, granting trustees the authority to manage the Bewind Trust.
  4. Application Form – A completed application form, as required by the Master’s Office, must accompany the submission.

Speak With Specialist Bewind Trust Lawyers

Bewind Trusts can be a powerful tool for protecting assets while retaining control over their management. If you are considering establishing a Bewind Trust, our experienced attorneys at Burger Huyser Attorneys are here to provide guidance through each step of the process, from drafting the trust deed to handling registration formalities. For more information, please contact us to schedule a consultation.

NEED TO CONSULT WITH TOP BEWIND TRUST LAWYERS IN SOUTH AFRICA? CONTACT OUR TRUST ATTORNEYS TODAY.

Contact our team of experienced trust attorneys at Burger Huyser Attorneys in Johannesburg and Pretoria, Gauteng to assist you in structuring the optimal estate plan for your needs and ideals.

CONTACT DETAILS

BEWIND TRUSTS

CONTACT US TODAY

CONTACT US

    FIRST NAME *

    LAST NAME *

    EMAIL ADDRESS *

    PHONE NUMBER *

    SELECT OFFICE BRANCH *

    HOW CAN WE HELP? *