Do all trustees require trustee bonds of security?
No, if trustees are exempt from furnishing security in the trust deed, they will not be required to source a bond through a bond provider.
What happens if a trustee named in the Letters of Authority resigns or dies – does this affect the security bond?
On the death or resignation of a trustee, the Letters of Authority must be returned to the Master for the name of the trustee concerned to be deleted. A written resignation by an outgoing trustee and a resolution by the remaining trustees accepting the resignation would be required by the Master and, in the case of a deceased trustee, a copy of the death certificate would have to be lodged. If security bonds were given to all named trustees an endorsement will have to be effected to the security bond to only reflect the remaining trustees names.
What else may I need to do if a replacement trustee has not been appointed by the Master and the Trust Deed specifies there must at all times be no less than a certain number of trustees?
An endorsement to the security bond will need to be effected to reflect the addition of the new trustee(s) for the Master to issue amended Letters of Authority. Until this is done, the remaining trustees do not have the capacity to enter into binding transactions on behalf of the trust and the surety will not be guaranteeing the performance of all appointees who are required to act together. The surety can only guarantee the performance of office holders/ appointees hence it is of extreme importance to notify the surety of any changes to the names and number of office holders.
Jacqui Smith (LLB)
Share this article
Trust registration Trusts must be registered with the Master in whose area of jurisdiction the greatest portion of the trust assets are situated. If more than one Master has jurisdiction over the trust assets, the Master in whose office the trust was first registered will continue to have jurisdiction. What does the Trust Property Control…
Wherever the deceased was living in the Republic of South Africa, the estate should be reported to the Master of the High Court in that jurisdiction. In other words if the deceased was living in that area for 12 months prior to his/her death, then the Master’s office overseeing estates in that region should open an…
Many years were spent debating whether or not advocates should be allowed to approach the public directly. Historically members of the public would brief an attorney who would then approach an advocate to argue a case before a court. This was known as the “referral system”. Finally the Minister of Justice publicised the DOJ’s plans…