Page 26 - Nexia SAB&T Trust Guide 2022

(c) make any account or investment at a financial institution identifiable as a trust
account or trust investment,
(d) in the case of trust property other than property referred to in paragraphs (b) or
(c), make such property identifiable as trust property in the best possible manner.
Treatment of immovable property – a trustee must notify all trustees so that a
decision may be made in regard to a proposed sale of immovable property held by
the trust. A trustee may not withhold information from co-trustees.
Collect debts due to the trust – trustees must collect debts owed in respect of
trust property.
Distribute trust income and capital – a trustee must distribute trust income and
capital to the appropriate beneficiaries at the time(s) stipulated in the trust deed
(where applicable).
Custody of documents – a trustee must keep all documentation relating to the
administration of the trust for five years after the termination of the trust. Such
documents (which includes a document which serves as proof of the investment,
safe custody, control, administration, alienation or distribution of trust property)
may not be destroyed without the written consent of the Master of the High Court.
Obligations in relation to the finances of the trust
Trust bank account – a trustee must deposit trust monies in a separate account
with a financial institution without delay.
Administration and investment – the trustee must administer the trust in terms
of the law and the provisions of the trust deed and act with the highest degree of
diligence and caution. It is improper for a trustee to borrow trust money.
Trust resolutions and decisions taken by the trustees are required to be
documented, and even if all trustees do not agree, and a majority vote is allowed
in terms of the trust deed, all trustees still have to sign each resolution of the trust.
Reasonable return on trust capital – a trustee must ensure that a reasonable
return is obtained on the trust capital.
Bookkeeping, accounting and financial statements – a trustee must keep, at the
office of the trust, accounting records that fairly represent the trust’s state of affairs
and business and explain its transactions and financial position. These records
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