Registration of Trusts

Trusts are registered at the Master of the High Court and not at the Registrar of Companies. This allows you to give a trust any name you desire. You do not have to first reserve a name as you would do when registering a company.

A trust is given a registration number when it is registered and operates on the same basis as a motor vehicle which has its own individual registration number. Although you can change the name of your trust – should the trust deed allow for this – the trust number will always remain the same and be the identifier of your trust.

A trust will always be registered with reference to the Master of the High Court’s office where it was registered. Each Master of the High Court’s office has its own sequence of numbers for every year.

It is critical to define the purpose and object of the trust clearly in the trust deed, without which the trust may not legally exist.

You can register a Living Trust (Inter Vivos Trust), which is registered during the lifetime of the settlor (the person establishing the trust), and an active trust is created, offering flexibility as either revocable or irrevocable. With a revocable living trust, the settlor retains the power to modify or terminate the trust while alive. In contrast, an irrevocable living trust cannot be altered or revoked without the beneficiaries’ consent. Living trusts actively serve to bypass probate, safeguard assets, and facilitate the seamless transfer of wealth to designated beneficiaries.

The registration of a Testamentary Trust, also known as a will trust, is established upon the death of the settlor, as specified in their will. This type of trust is useful for protecting assets for minor children or individuals who are unable to manage their own finances. Testamentary trusts can provide long-term financial support, ensure responsible asset management, and minimize estate taxes.

A discretionary trust grants the trustee broad discretion in determining how and when to distribute the trust’s assets among the beneficiaries. This flexibility allows the trustee to consider the individual circumstances and needs of each beneficiary. Discretionary trusts are commonly used for asset protection, family wealth management, and safeguarding assets from creditors.

Charitable Trust
A charitable trust is established for the purpose of benefiting charitable organizations or specific causes. It allows individuals or corporations to contribute funds or assets to support charitable endeavors while potentially receiving tax benefits. Charitable trusts are instrumental in philanthropy and supporting causes close to your heart.

Special Trusts are tailored designed to meet the distinct needs of individuals with disabilities or dependents who depend on ongoing financial support. These trusts are crafted meticulously, establishing a comprehensive framework for effectively managing assets and safeguarding the well-being of vulnerable beneficiaries. Special Trusts can be established to cover essential aspects such as medical care, accommodation, and day-to-day expenses, ensuring the highest level of support and care for beneficiaries.

A business trust is a special legal instrument for holding and running a business. Many business owners use this model to protect their assets and safeguard the business against liability and certain taxes. Business trusts can get fairly complex, so it’s important to work with a trust lawyer if you’re planning to take this route for your business.