Page 28 - Nexia SAB&T Trust Guide 2022

The independent trustee’s function is thus to assist other trustees, who may not
be familiar with the legal, tax, accounting and other aspects relating to the trust.
Compliance with legislation
The trustee must ensure that the trust complies with the Trust Property Control
Act, and all other applicable legislation (as amended), including, but not limited
to, the following:
■ The Income Tax Act (no.58 of 1962).
■ The Banks Act (no.94 of 1990).
■ The Value-Added Tax Act (no.89 of 1991).
■ The Financial Institutions (Protection of Funds) Act (no.28 of 2001).
■ The Prevention and Combating of Corrupt Activities Act (no.12 of 2004).
■ The Financial Intelligence Centre Act (no.38 of 2001).
■ The Tax Administration Act (no.28 of 2011).
■ Estate Duty Act (no.45 of 1955).
The trust must be managed by the trustees as a separate entity to the founder and
the beneficiaries. It is thus important that trustees play an active role in a trust’s
administration. Trustee resolutions, minutes, and a separate bank account should
be maintained by the trustees during the administration of the trust. If this is not
done, it opens up the possibility of the trust being declared by a court as the “alter-
ego” of the founder (on application by, for example, the the South African Revenue
Service, or creditors of the trust).

Before accepting the appointment as a trustee for a trust, a person should
therefore take cognisance of his duties, and understand the personal risk
in taking up the trusteeship.

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