Page 49 - Nexia SAB&T Trust Guide 2022

EXAMPLES OF IMPORTANT CASE LAW

Case Court Decision Relevance
IK v MK 2020 The trustee was using trust(s) A spouse who
as his alter-ego and the trust anticipates an
instruments were drafted imminent divorce,
in such a way as to benefit cannot use trust(s) to
the husband (in this case) conceal asset(s) that
and to give him control over the founder(s) and
the trusts’ assets. He could trustee(s) are not willing
decide how, when and if, his to disclose to interested
wife would benefit from the parties. One cannot
trust(s). The judge ordered mingle personal assets
that the “veil” protecting with trust assets.
the trust(s) be pierced to
determine the accrual of
the husband’s estate in the
divorce proceedings.
Jordaan vs Jordaan Trust was the founder’s alter Separation of
2001 ego (founder treated trust ownership (or control)
assets as his own), assets from enjoyment is
were subject to division. fundamental in creating
a valid trust.
Doyle v Board of Beneficiaries are entitled to Trustees must keep
Executors 1999 have access to the books of accurate records and
account of the trust. act in good faith.

Potgieter v Potgieter Beneficiary had not agreed to Once a beneficiary has
NO 2012 amendment of trust deed so accepted his rights,
agreement was invalid. any change to the trust
deed must be agreed
by the beneficiary.

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