The Trust Property Control Act 57 of 1988 (the Act), defines a Trust as; “… an arrangement where one person transfers ownership of property to another person (the trustee(s)) to be managed and distributed according to the terms of a trust instrument (Trust Deed/ Will), for the benefit of a specified person or group of people (the beneficiaries)”

In other words, assets of an individual(s) are transferred into a Trust by a person(s), and managed by a trustee(s) for the benefit of another person known as a beneficiary(ies). The purpose of a Trust is to protect the assets for the beneficiary(ies) of the Trust and the distribution of assets, etc. are outlined in a Trust Deed.

The Act provides for two categories of Trusts, an Inter-Vivo trust (a Trust that is created while you are alive) and a Testamentary Trust (created in your Will). The creation of a Trust is part of estate planning and is a very specialised field.

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