Page 34 - Nexia SAB&T Trust Guide 2022

Most trust deeds will set out the circumstances when the office of trusteeship will
be vacated – for example, if a trustee should die, resign, or if he shall become unfit
or incapable of acting as a trustee, or of unsound mind or mentally incapable of
managing his affairs, or if he should become insolvent or go into liquidation, or if
he should become disqualified to act as a director in terms of the Companies Act
(no.71 of 2008), or if the majority of the trustees require in writing that he resign.
Section 21 of the Trust Property Control Act provides that whether or not the trust
instrument provides for the trustee’s resignation, the trustee may resign by notice in
writing to the Master of the High Court, as well as the the ascertained beneficiaries
who have legal capacity, or to the tutors or curators of the beneficiaries of the trust
(whichever is applicable).
Should a trustee die or resign, the Master of the High Court requires the original
Letters of Authority together with the death certificate or resignation letter from the
outgoing trustee, as well as a resolution by the remaining trustees accepting and
approving the changes to the trusteeship.
Should a trustee be removed from office, the Master of the High Court requires the
original Letters of Authority, together with the court order or Master’s direction, as
well as a resolution by the remaining trustees accepting and approving the changes
to the trusteeship.
Any change of trustees, for whatever reason, is only of legal force and effect once
the original Letters of Authority/Master’s Certificate have been amended by the
Master of the High Court to reflect that change.
Steps must then be taken to appoint a new trustee, and until the minimum required
number of trustees have been formally appointed by the Master of the High Court
and amended Letters of Authority/Master’s Certificate issued reflecting their names,
the trust cannot transact.
Access to Court
Any person who feels aggrieved by an authorisation, appointment or removal of a
trustee by the Master of the High Court, or by any decision, order or direction of
the Master made or issued under the Trust Property Control Act, may apply to the
court for relief, and the court shall have the power to consider the merits of any
such matter, to take evidence, and to make any order it deems fit.

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