Trustee Definition Trust Agreement

In many ways, trusts in South Africa operate in the same way as other common law countries, while South African law is in fact a mixture of the British common law system and Roman-Dutch law. 1 If an estate is qualified and opts for a corporate tax (ERM) for income tax purposes, it is taxed at rates 36 months after the person`s death. Will trusts that benefit persons with disabilities who are eligible for the disability tax credit will continue to be taxed at staggered rates. These trusts are called qualified disability trusts (QDTs). An agent is a person who assumes responsibility for the management of money or assets set aside in a trust for the benefit of another person. As the name suggests, revocable living trusts can be revoked at any time by the donor. Because they can be revoked, they can also be modified, modified or modified at any time by the funder. Therefore, revocable confidence is an extremely flexible device. Revocable trusts generally require that their assets be distributed after the death of the donor (or donors), as is often the case when a couple creates a common revocable trust). Because of this function, the revocable position of trust is often referred to as «will-ersatz.» The intention of the declaration is to show the existence of trust and to give some details, not to establish them. The explanation is simply to describe the general conditions of trust. These are examples and should be modified by the customer if necessary to reflect the actual conditions of trust.

If one of these criteria is lacking, there is no trust. Therefore, each document (whether it is a formal confidence document or a declaration of confidence) must indicate these essential parts: settlor, property, trustee and beneficiary. The administrators manage the affairs that accompany the Trust. The trust`s issues may include prudent investment of the trust`s assets, regular accounting and reporting to beneficiaries, filing necessary tax returns and other taxes. In some cases, which depend on the trust instrument, trustees must make discretionary decisions as to whether beneficiaries should receive assets in their favour. An agent may be personally held liable for problems, although fiduciary liability insurance, similar to the liability insurance of directors and public servants, may be acquired. For example, an agent could be held liable if the assets are not properly invested. In addition, an agent may be liable to its beneficiaries, even if the trust has made a profit but has not given its consent. [20] In the United States, however, a discharge clause may, like directors and officers, minimize liability; Although this was maintained earlier than against public order, this position has changed.

[21] A trust is not a legal entity per se. Rather, it is a method of payment of property and a relationship between the agent and the beneficiary. However, a trust is considered an individual for income tax purposes. A trust is a division of ownership between its «legal» property and its «beneficial» property. The «agent» is the rightful owner of the property and holds the property only for the benefit of the owner of the economic or «fair» owners. The fair owner of the fiduciary property is the «beneficiary.» The person who funds trust in the first place (who is usually also the person who creates the trust) is called «Grantor» or «Settlor.» The person (s) in favour of which the trust is made and which ultimately includes income and/or wealth. Recipients of a trust may be either «income beneficiaries» if they are entitled only to the income of the trust, or «capital beneficiaries» if they are entitled to the trust`s capital, or both.