Legal nature of trusts

Question 1

Generally speaking a trust is created

Answer 1

Either by a contract( inter vivos trust) or will of a testator( a testamentary trust).

Question 2

Legal nature of an inter vivos trust

Answer 2

1. Simply a contract.
2. Contract for the benefit of a third person.
3. Formalities prescibed in contract must be followed.

Question 3

Legal nature of a testamentary trust

Answer 3

1. Legal institution in its own right.
2. Not a contract but comes into being on the death of the founder.
3. Has its own unique legal nature and characteristics.
4. Formalities prescribed in the Wills Act must be followed.

Question 4

Trust Property Control Act Section 12 states that:

Answer 4

Trust property does not form part of the personal estate of the trustee.

Question 5

Bewind trust:

Answer 5

Beneficiary does own the assets and the assets are merely managed and controlled by trustees