A trust is a way to support a beneficiary who is close to or has a developmental disability that may affect their ability to manage their finances. As soon as the beneficiary is deemed able to manage his property, he receives possession of the trust. The trustee is the rightful owner of the trust`s assets as a trustee for the beneficiary or beneficiaries who are the just owners of the trust`s assets. Trustees therefore have a fiduciary duty to administer the trust for the benefit of the equitable owners. You must provide regular accounting of escling income and expenses. Trustees may be compensated and their expenses reimbursed. A court of competent jurisdiction may dismiss a trustee who fails in his or her fiduciary duty. Certain breaches of fiduciary duty may be charged with criminal offences and brought to justice. It is important to note that the term « direct or indirect » covers a wide range of transfers, including those to trusts.

People who do not act remotely usually include a child, grandchial, great-grandchial, their spouse`s child, their child`s spouse, sibling or brother-in-law. Cyprus does not limit the duration of an international trust and can be established for an indefinite period. [36] The choice of preferred beneficiary allows income that would otherwise be distributed to the beneficiary to accumulate in the trust. It also allows the privileged beneficiary to use his personal allowance effectively and to benefit from an income up to this amount tax-free. It can also be beneficial in preventing the disabled person from losing the state`s disability benefits. The formalities required of a trust depend on the type of trust in question. As mentioned earlier, a revocable trust can have adverse tax consequences. If, according to the trustee`s wishes, the assets of a trust may revert to the trustee or persons designated by the transferor after the trust is established, the property income and capital gains are attributed to the wrongful (but this does not include business income). In addition, during the grantor`s stay, the property cannot be distributed to the beneficiary children without adverse tax consequences. Note that even an irrevocable trust can be considered revocable if the contemptuous and sole trustee are the same person. The reason for this is that the heir, as the sole trustee, may have the opportunity to control the assets of the trust and determine how they are distributed, according to the terms of the trust. This rule may also apply if one of the spouses is the trustee and the other spouse is the trustee.

Indeed, it could be argued that the spouses act together. Therefore, in order to avoid the application of this attribution rule, if the contemptuous is also a trustee, it is important to ensure that there are at least two other trustees and that the contemptuous cannot be allowed to force or overturn the decisions of the majority. With the creation of a trust, it may be easier to ensure that the donor and trustee are not the same person. In many ways, trusts in South Africa operate in the same way as other common law countries, although South African law is actually a mixture of the British common law system and Romano-Dutch law. .