Administration of a trust

The administration of a trust entails receiving and controlling trust assets, and the protection thereof – which requires that investments are made according to the stipulations of the trust deed, the needs of the beneficiaries and investment principles.

The administration also entails that trustees handle all transactions, and requires of them the investment of assets without speculating, and to make regular maintenance payments to beneficiaries.

In terms of the law, trustees are expected to report to:

• Fellow trustees, beneficiaries and guardians of minor children

• The South African Revenue Service

• The Master of the High Court (if so requested)

Lastly, the administration of a trust entails that trustees must provide advice to fellow trustees and beneficiaries. Trustees administer a trust themselves. If they cannot or will not do so, they may contract agents to take care of the administration on their behalf.