Page 31 - Nexia SAB&T Trust Guide 2024

The Master requires the independent trustee to sign a Sworn Affidavit upon his
appointment. The Affidavit requires such a person to declare, under oath, that:
1. He has no family relation or connection, blood or other, to any of the existing
or proposed trustees, beneficiaries or founder of the trust.
2. That he is competent to scrutinise and check the conduct of the other
appointed trustees who lack a sufficiently independent interest in the
observance of substantive and procedural requirements arising from the trust
instrument.
3. That he has no reason to conclude or approve transactions that may prove to
be invalid, because he is knowledgeable in the law of trusts.
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).
■ Protection of Personal Information Act (no.4 of 2013).
Some of the above-named pieces of legislation, in so far as they are applicable
to trustees, are discussed in more detail in the Chapter “Other Legislation and
Trustees”.

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

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