Articles on: Trusts

Who can be a beneficiary of a trust?

Beneficiaries are individuals or entities designated to receive trust distributions, such as income or assets.

Beneficiaries have certain rights and interests in the trust assets. A trust deed usually outlines these rights, including the right to receive income, the right to request information about the trust, and the right to challenge trust actions that may adversely affect them.

Individuals: Most commonly, family members, friends, or any specified individuals can be named as beneficiaries in a trust. These individuals are entitled to receive benefits from the trust, such as income or assets.
Classes of individuals: Instead of naming specific individuals, a trust deed may define a class of beneficiaries, such as "children of the settlor" or "descendants of a particular family member." This allows for flexibility in accommodating future generations.
Charitable organisations: Some trusts in South Africa are established for charitable purposes. In such cases, beneficiaries may include charitable organisations or entities dedicated to specific social or community causes.
Companies or entities: Beneficiaries can also include companies or other legal entities. This is common in business trusts, where the benefits may be distributed to specific companies or shareholders.

Updated on: 08/04/2024

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