Crest Trust Holdings Inc.
Trusts
The setting up of a trust often has its origin in the planning of one’s estate and is used as a financial vehicle, offering protection of assets against potential financial mishaps. It also offers protection for the use of assets by beneficiaries. We offer the full spectrum of trust services: setting up of new trusts, legal auditing of existing trusts, administration of trusts and in selected cases we will also accept appointment as an impartial trustee.
The administration and management of any trust includes the following:
- Asset/ investment management
- Relationship management between beneficiaries, co-trustees and intermediaries.
- Compliance with relevant legislation – Trust Property Control Act, Income Tax Act and Exchange Control Regulations, to name but a few.
Deciding what not to do, is as important as deciding what to do.
– Steve Jobs
Trusts generally have a very wide application and can be tailor-made to meet specific needs. There are a variety of reasons why a trust should be established
- To provide financially and otherwise for minor beneficiaries
- To honour maintenance commitments in terms of a divorce order and settlement
agreement. - Providing for a disabled dependant or aged parent
- Protecting and preserving assets for the next generation
- Serving as a holding vehicle for assets as part of estate planning structuring
- Providing a regular income for favourite charities (public benefit organisations).
- Providing for the dependants of a deceased employee
Protect and Preserve
A Trust is a legal relationship whereby assets are placed under control of another person for the benefit of a third party.
Our trust service includes facilitation of the administration of testamentary trusts which are created in a Last Will and Testament and which becomes operative upon the death of the testator. Inter vivos trusts are established during the lifetime of the Founder, by way of a deed of trust.
The administration of any trust involves the following:
- Managing assets and investments.
- Managing relationships between beneficiaries and Trustees.
- Compliance with relevant legislation – Trust Property Control Act, Income Tax Act, Exchange Control Act etc.
Key Aspects
The administration of a trust requires that the Trustees exercise due care and diligence. There are a number of important principles that come into play:
- Giving effect to the trust instrument (i.e. the Deed of Trust, or the Will).
- Exercising any discretion given to the Trustees independently.
- Observing the utmost faith.
- Using greater care in trust property than the Trustee would in dealing with his own.
- Avoiding any conflict of interest.
Trustee Duties
The fiduciary responsibility of a trustee is onerous:
- Keeping a balance between present and future beneficiaries, where the interests of one cannot outweigh those of the other.
- Treating all beneficiaries impartial.
- Establishing a balance between the production of income and the protection of capital.
- Ensuring that the property of the trust retains its value, and where possible, appreciates.
- Keeping trust property in a proper state of repair.
- Switching speculative investments awarded in trust, to safer investments.
- Investing surplus funds timeously.
- Making sure that co-trustees act prudently.
- Reviewing the trust regularly.
- Submitting statutory returns, such as tax returns, timeously.
- Recording important decisions in writing.
- Honouring the wishes of the Testator or Founder.
- Entertaining requests for assistance from beneficiaries.
