The two terms describe different features and are not opposites. “inter vivos” describes when and how the trust is created: during the founder’s lifetime. “Irrevocable” is a description sometimes used to indicate that the founder does not have an unrestricted right to cancel the trust or take back its assets.
In South Africa, however, the word “irrevocable” does not by itself determine whether a trust deed can ever be changed. The trust deed must be read together with South African trust law. As a general common-law principle, an inter vivos trust created for the benefit of third parties may in some circumstances be amended or cancelled by the founder and trustees before beneficiaries have accepted the benefits conferred on them. Once beneficiaries have accepted benefits, their rights may restrict later amendments and their consent may be required. Express amendment provisions in the deed and the nature of the beneficiaries’ rights must also be considered.
A court may also vary or terminate provisions of a trust under section 13 of the Trust Property Control Act in the limited circumstances set out in that section. Whether a trust is “revocable” or “irrevocable” must therefore be determined from the deed and the applicable law, not from the label alone. The label also does not, by itself, determine estate duty, creditor protection or tax treatment.
See also: What is the opposite of an inter vivos trust? | How do I know if my trust is revocable or irrevocable? | What are the benefits of an inter vivos trust in South Africa?
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.