| dc.description.abstract | This mini-dissertation is aimed at giving practical guidance to trustees on the administration of a trust; with specific reference to the nature of a trust, general principles of a trust, the fiduciary office of a trustee and how to conduct one to avoid being removed from office.
Trusts are valuable estate planning tools that amongst other advantages, provide for estate freezing and protection from creditors. There is, however, not specific guidelines regarding who can be appointed as a trustee, which can lead to an incompetent person being appointed as a trustee. Because a trustee is the pivotal functionary in the administration of a trust, much of the success of a trust is dependent on the way that a trustee administrates a trust.
In order for a trustee to satisfactorily fulfil his duties as trustee, it is of paramount importance that a trustee knows and understands the nature of a trust, the general principles that underlie the functioning of a trust, the duties and powers that are bestowed on him, how to perform these duties and powers and lastly how to properly conduct himself as a trustee.
The most important principles for a trustee to keep in mind is that he administrates a trust on behalf of another or for the attainment of an impersonal goal, and therefore he has a fiduciary duty to and relationship of trust with the beneficiaries of the trust that must be preserved at all times. Should a trustee breach this relationship of trust, it may lead to him being removed from office. It is therefore in the best interests of both trustees and beneficiaries that trusts are satisfactorily administrated.
The study closes with recommendations on how to improve the competency of the appointed trustees, which may lead to the better administration of trusts. | en_US |
