The Family Trust in South Africa – Do you have your Family Trust registered?

A family trust can play an important role in your family’s life. It may continue to do so after you passed away. The same like owning property, a car or a business, creating and running a family trust may sometimes be beneficial to both you and your family. The aim of this article is to bring the concept of the Family Trust to your attention.

What is a Family Trust in simple terms?

Basically, someone called a founder or donor would donate some money or property and appoint trustees to administer the property for the benefit of certain identified beneficiaries. The property would then be called the Trust Property. This arrangement and agreement is called a Trust. The terms of the agreement would be stipulated in a Trust Deed. The Trust Deed is a legal document. This document would then be registered with the Office of the Master of the High Court. The Trustees may only act in terms of the Trust Deed. All property, money and so on that is donated to the Trust, by the founder or anyone else, does not belong to him or her. The property belongs to the trustees in their capacity as trustees for the time being of the Trust. So, if trustees change, the new trustees take on the responsibility to manage the Trust Property as initially agreed to by the initial Trustees and the Donor. And of course, the Trustees can only use the Trust Property as stipulated in the Trust Deed.

Example of the implementation of a Family Trust

Let’s say the Trust Deeds states that the Trust assets are to be used for the benefit of the Founder’s grandchildren. It is to be used for school fees, and tertiary education and the like. Therefore, the Trustees would then have to utilise the Trust property to pay for the school fees of the founder’s grandchildren. If the grandchildren are not at school yet, the Trustees may have to invest the Trust assets until such time it is needed for school fees.

When would a Trust Terminate?

The Trust Deed would stipulate when the Trust would terminate and what should happen to its assets at the time. If one applies the example above, it may state that the Trust terminates when the youngest grandchild completes University. Should this happen, then the Trust Deed may stipulate that the remaining Trust assets be distributed to all these grandchildren in equal shares.

Tax and legal implications of a Trust

The tax laws applicable to a Trust may differ significantly to that of an individual or a company. It is therefore important to consult an accountant or tax practitioner on such implications. If a Trust is an ideal vehicle to use to secure your family’s financial future, then creating a Trust sooner than later may be the best thing to do.

Speak to us should you wish to register a Family Trust

Should you wish to register a Family Trust, feel free to contact us. We are certain that you found the above article useful and interesting. Please consider sharing it on the share buttons below. They include Facebook, Twitter, LinkedIn, WhatsApp, Gmail and more. Someone may find it useful as well. Should you require business advice or services, feel free to click on these links: Business SA | Private Legal | Envirolaws

Posted on 11 February 2025 by Telelaw

The Family Trust in South Africa – Do you have your Family Trust registered?

What is a Family Trust in simple terms?

All property, money and so on that is donated to the Trust, by the founder or anyone else, does not belong to him or her. The property belongs to the trustees in their capacity as trustees for the time being of the Trust. So, if trustees change, the new trustees take on the responsibility to manage the Trust Property as initially agreed to by the initial Trustees and the Donor. And of course, the Trustees can only use the Trust Property as stipulated in the Trust Deed.

Example of the implementation of a Family Trust

When would a Trust Terminate?

Tax and legal implications of a Trust

Speak to us should you wish to register a Family Trust

Should you wish to register a Family Trust, feel free to contact us.

We are certain that you found the above article useful and interesting. Please consider sharing it on the share buttons below. They include Facebook, Twitter, LinkedIn, WhatsApp, Gmail and more. Someone may find it useful as well.

Should you require business advice or services, feel free to click on these links:

Business SA | Private Legal | Envirolaws

Children born out of wedlock – The issue of whose surname the minor child should have
Children born out of wedlock – let us have a look at the law when it comes to their surname, and changes to it. In the ideal world, a couple falls in love, gets married, and then bring a child into this world. However, since the beginning of time, this was not always the case. History has many stories of children who were born out of wedlock. This is more prevalent this modern day as many couples decide to start a family, without nuptials. Then there is the other extreme where a child is conceived through a brief encounter and then the parties continue with their own paths in life. The law and society also treat children born out of wedlock differently. This has changed to an extent where neutral terms are being used. Words like “illegitimate” and so on are used to refer to such innocent children whose fate was laid down by their parents. The law and society were so extreme, that even children born from religious marriages, which were not recognised as valid civil marriages were also referred to as “illegitimate”. It is however still shocking that the South African law we refer to later, still uses the term “illegitimate child”. Nonetheless, a beautiful innocent child is born, and then the issue of whose surname he or she should have has arisen. This is what this article addresses. Whose surname should a child born out of wedlock have, according to the law? And further, can such a surname be legally changed later?

Issues in relation to a surname of minor children born out of wedlock

This article deals with two issues in relation to a surname of a child born out of wedlock. The first is whose surname a child born out of wedlock should have according to the law? This is an important issue. There are a few scenarios that come to play. One where the parties lived together and planned on having the child and intend to marry or live together indefinitely. In such a case, maybe the child should have the father’s surname. Then there is the other situation, where the mother and the father of the child had a short intimate relationship, and he wants the child to have his surname. This could be complicated as he may never form part of the child’s life but wants the child to have his surname. This we refer to as an ego or vanity reason. And the second issue this article deals with is what the law says regarding a change to the surname of a child born out of wedlock. This is also an important issue as, sometimes, the father of a child born out of wedlock is the one who cares for the child and invests most of his life in the child. Situations can arise where it would be expedient for him to have primary care over the child and for the child to have his surname. We will look at this issue in more detail below. Now let us look at the law.

Births and Deaths Registration Act 51 of 1992

When it comes to issues of name, surname, details of the father on the birth certificate and so on, we refer to the Births and Deaths Registration Act 51 of 1992. What this Act says, is that within 7 (seven) days of the birth of the child born out of wedlock, or any child for that matter, notice of his or her birth must be given to the Department of Home Affairs in the prescribed manner. It further says that if the parents are married, then the child would have the father’s surname. However, that is not the case for children born out of wedlock as you will see later. The Births and Deaths Registration Act 51 of 1992 unfortunately still uses the term “illegitimate child”. But let’s have a look at it anyway.

Section 10 of the Births and Deaths Registration Act 51 of 1992

Section 10 of the Births and Deaths Registration Act 51 of 1992 is entitled “Notice of birth of illegitimate child”. It states the following: “10. (1) Notice of birth of an illegitimate child shall be given – (a) under the surname of the mother; or (b) at the joint request of the mother and of the person who in the presence of the person to whom the notice of birth was given acknowledges himself in writing to be the father of the child and enters the prescribed particulars regarding himself upon the notice of birth, under the surname of the person who has so acknowledged. (2) Notwithstanding the provisions of subsection (1), the notice of birth may be given under the surname of the mother if the person mentioned in subsection 5 (1 )(b), with the consent of the mother, acknowledges himself in writing to be the father of the child and enters particulars regarding himself upon the notice of birth.”

Explanation of section 10 of the Births and Deaths Registration Act 51 of 1992

Section 10 says that if the child was born out of wedlock, he or she should have the surname of the mother. However, if both the mother and father agree, then the child can have the surname of the father. Now, this is what the law says, and what would probably happen in life should the mother and father be on good terms when the child’s name is registered. However, what can the father do if later he wants the child to have his surname? In that case, we have to look at a different section of the Births and Deaths Registration Act 51 of 1992. And that is section 25 of the Act.

Section 25 of the Births and Deaths Registration Act 51 of 1992

Section 25 of the Births and Deaths Registration Act 51 of 1992 deals with the alteration of the surname of a minor. Unfortunately, in that section, the word “illegitimate minor” is still used. The sections state the following: “25. (1) When- (a) the birth of any illegitimate minor has been registered and the mother of that minor marries any person other than the natural father of the minor; (b) the father of any minor is deceased or his parents’ marriage has been dissolved and his mother remarries or his mother as a widow or divorcee resumes a surname which she bore at any prior time; (c) the birth of any illegitimate minor has been registered under the surname of his natural father; or (d) a minor is in the care of a guardian, his mother or his guardian, as the case may be, may apply to the Director-General for the alteration of his surname to the surname of his mother, or the surname which his mother has resumed, or the surname of his guardian, as the case may be, and the Director-General may alter the registration of birth of that minor accordingly in the prescribed manner: Provided that the man who married the mother of a minor mentioned in paragraph (a) or (b), shall grant written consent for the alteration. (2) Any parent or any guardian of a minor whose birth has been included under a specific surname in the population register, may on the strength of a reason not mentioned in subsection (1), apply to the Director-General for the alteration of the surname of the minor under which his birth was registered, and the Director-General may, on submission of a good and sufficient reason given for the contemplated alteration of the surname, alter the said original surname accordingly in the prescribed manner. (3) For the purposes of this section “guardian” includes any person who has in law or in fact the custody or control of a minor.”

Explanation of Section 25(1) of the Births and Deaths Registration Act 51 of 1992

Section 25 (1) provides for the situation where the minor can have his or her surname change. Most of the reasons mentioned sound logical. However, what happens in the case of a father wanting to change the child’s surname to his surname and the child was born out of wedlock? Well, in that case, section 25 (2) comes with an answer.

Section 25 (2) of the Births and Deaths Registration Act 51 of 1992

According to section 25(2), the father of the illegitimate child can make an application to the Director-General of the Department of Home Affairs for the change of the minor child’s surname born out of wedlock. However, if the mother is still alive, both parents must consent to the application. If, however, the mother does not consent to it, the father would have to make an application to the High Court to dispense with the mother’s consent and for the Director-General to apply their mind without the consent of the mother.

Court Application in relation to a surname of a child born out of wedlock

Should there be an application to Court, as just mentioned, the Court would have to look at what is in the best interests of the minor child. Various factors would be looked at. It is however suggested that ego reasons should not be the justification for making the application. In other words, the father wants the child to have his surname solely due to him being the father, even though the mother cares for the minor child.

Posted on 11 February 2025 by Telelaw

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