A family trust is the informal term commonly used for a trust established to hold and administer assets for the benefit of members of a family. It is not a separate legal category under South African law. Most family trusts are created during the founder’s lifetime as inter vivos trusts and are often structured as discretionary trusts, giving the trustees discretion over when and how benefits are distributed.

A trust is generally not a separate legal person in South Africa. Instead, the trustees hold or administer the trust property in their representative capacities and must keep it separate from their own personal estates. For tax purposes, however, a trust is treated as a person and may be a taxpayer in its own right.

An inter vivos trust is established under a written trust deed, which sets out the trust’s purpose, beneficiaries, trustee powers and governance rules. The trust deed must be lodged with the Master of the High Court, and no trustee may act in that capacity until the Master has issued written authority. Trust property can include immovable property, investments, shares, cash and other assets, subject to the trust deed and applicable law.

Wealth and Legacy Group can assist with establishing a family or inter vivos trust and with putting the appropriate trust structure and governance arrangements in place.

See also: What is the purpose of a family trust? | What type of trust is best for a family?

Disclaimer: The information provided here is intended as general guidance only and does not constitute legal, tax, or financial advice. Every situation is unique, and legislation is subject to change. We invite you to reach out to our team at Wealth and Legacy Group for guidance tailored to your specific circumstances.