10 MILLION RAND FINE OR 5 YEARS IMPRISONMENT OR BOTH?

A Trust established in 1990 is rarely a well-oiled and compliant machine. Activ8 Fiduciary is here to assist.

Whether Active or Dormant, ensuring that your trust is compliant involves a thorough review of various aspects of its operations and administration. Here are some key questions and considerations to determine if a trust is compliant to avoid imprisonment or a million rand fine.

1. Does the Trust Have a Bank Account?
   • This account should be used exclusively for all financial transactions related to the trust. It ensures transparency and proper tracking of funds.
   • To maintain financial integrity, all payments and receipts should be processed through the trust’s bank account. This practice helps in maintaining clear records and simplifies the auditing process.
   • The initial donation or funding of the trust should be deposited into the trust’s bank account. This step is crucial for establishing a clear financial trail from the inception of the trust.
2. Is the Trust Registered for Tax?
   • Tax registration is a critical compliance requirement. The trust must be registered with SARS to ensure it meets all tax obligations.
   • Submitting tax returns on time is essential for compliance. The trust should ensure that all required tax returns have been filed with the South African Revenue Service (SARS)
3. Who Is the Accountant for the Trust?
   • Having a qualified accountant is vital for managing the trust’s financial affairs. The accountant should be responsible for preparing financial statements, tax returns, and ensuring overall financial compliance.
   • Since inception, despite the dormancy of the Trust, the financial records must be up to date and in order.
4. Has the UBO Been Submitted on the Master’s Portal?
   • The Ultimate Beneficial Owner (UBO) information must be submitted on the master’s portal. This submission is part of regulatory requirements to ensure transparency and accountability. The deadline for all registered trusts to be uploaded was 15 November 2024.
5. Has the Trust Held AGMs and Compiled the Minutes for the Trust Meetings?
   • Annual General Meetings (AGMs) are essential for discussing the trust’s activities and making important decisions. The minutes of these meetings should be compiled and maintained as part of the trust’s records.
6. Have the Trustees Prepared and Signed Resolutions Regarding All Transactions of the Trust?
   • Trustees should prepare and sign resolutions for all significant transactions. These resolutions serve as official records of the decisions made by the trustees.
7. Does the Trust Require a Change?
   • Periodically reviewing the composition of trustees is important. If there is a need for a change in trustees such as resignation, retirement, death, inability to fulfil the onerous duties of a Trustee, family dynamics and evolvement. We can assist you with the amendment and dealing with the Master of the High Court to effect the changes.
     • REMEMBER!!!  The change is only official once a new Letter of Authority has been issued by the Master of the High Court. Until then, the previous arrangements remain in effect.
   • Due to recent legislative amendments, the Trust Deed may no longer align with the current state of Trust Law. For instance, trustees are now considered equal, and decisions must be made unanimously and documented with a signed resolution. Additionally, if there have been significant changes in the trust’s operations or objectives, a deed of amendment may be necessary.
8. Does the Trust Have an Asset Register?
   • Maintaining an asset register is essential for tracking the trust’s assets. This register should be regularly updated to reflect any acquisitions or disposals of assets.
9. Who Are the Current Administrators?
   • The administrators of the trust play a crucial role in its management. Activ8 Fiduciary ensures all aspects of your Trust Compliance. By addressing these questions and ensuring that all aspects of the trust’s operations are compliant, trustees can effectively manage the trust and fulfil their fiduciary duties with our expertise.  

Contact your Activ8 financial advisor today to discuss the options for effectively managing your trust.