Many new Family Business Trusts ignore independent trustee requirements at own risk: Why trusts need an independent trustee

In March 2017 the Master’s Office issued a directive stating that all new so-called “family business trusts” must appoint an independent trustee. Since the directive was issued it is reported that many new family business trusts have still not appointed an independent trustee. Morné Janse van Rensburg, Managing Director at Bannister Trust (Pty) Ltd warns…

Why Trusts Need an Independent Trustee

Unbeknown to many, the Master’s Office issued a directive in March 2017 stating that all new so-called “family business trusts” must appoint an independent trustee. Firstly, what is a “family business trust”? In brief, these trusts would have the following characteristics: The trustees have the power to contract with independent third parties, thereby creating trust…