Share Trust Registrations

What is a Share Trust

A Share Trust is a legal structure where trustees hold and manage company shares on behalf of beneficiaries, according to the terms of a trust deed. Instead of individuals directly owning shares, the trust becomes the shareholder, providing asset protection, tax efficiency, and structured ownership control.

Advantages of a Share Trust

  • Asset Protection: Assets within a Share Trust are shielded from creditors, lawsuits, and unforeseen financial risks and protects company ownership from being mismanaged or sold off in disputes.  
  • Business Succession Planning: Ensures shares are passed down to the next generation or designated individuals smoothly and prevents shares from being fragmented or transferred to unintended parties.
  • Tax Benefits: Allows strategic income distribution to beneficiaries in lower tax brackets and assists in potentially reducing estate duty and capital gains tax liabilities.
  • Continuity & Control: Unlike direct ownership, trust-held shares do not appear in public records and provides privacy for high-net-worth individuals and business owners.
  • Confidentiality & Privacy: Unlike wills, which become public records, Property Trusts remain private and prevents public scrutiny of property ownership and wealth distribution. 
  • Employee Share Ownership & Incentives: Can be used for Employee Share Ownership Plans (ESOPs) to reward employees with shares while maintaining control and helps attract and retain key talent in the business.

Reasons for Registering a Share Trust

A Share Trust is registered to protect business ownership, ensure smooth succession planning, and provide asset protection by keeping shares within a structured and controlled entity. It helps shield shares from creditors, legal disputes, and unwanted transfers while offering tax efficiency by reducing estate duties and capital gains tax. A Share Trust also facilitates employee share ownership (ESOPs), maintains confidentiality, and secures long-term financial benefits for beneficiaries, such as family members or key stakeholders. By avoiding probate and ensuring seamless ownership transitions, a Share Trust provides stability, privacy, and strategic wealth management.

Choosing a Trustee

The choice of a trustee is a critical decision when setting up a trust. A trustee is responsible for managing the trust’s assets and ensuring that the trust operates in accordance with its objectives and legal requirements. It is important to select a trustee who is trustworthy, competent, and capable of fulfilling their fiduciary duties. While the founder of the trust can serve as a trustee, it is advisable to appoint at least one independent trustee to ensure impartiality and to meet legal requirements. The trustee must be a natural person over the age of 18 and should have the necessary skills and expertise to handle the trust’s affairs. 

What is a Trust Deed

A trust deed is a legal document that sets out the terms and conditions of the trust. It outlines the powers and responsibilities of the trustee, the rights and entitlements of the beneficiaries, and the purpose and objectives of the trust. A trust deed is carefully tailored to meet the specific requirements of the trust and should comply with the provisions of the Trust Property Control Act.

Appointing Beneficiaries

Beneficiaries are the individuals or entities that are entitled to benefit from the trust’s assets. When appointing beneficiaries, it is important to consider their needs and circumstances, as well as the objectives of the trust. The trust deed should clearly outline the rights and entitlements of the beneficiaries and the conditions under which they may receive benefits from the trust. It is important to note that the trust deed should be flexible enough to accommodate changes in circumstances and allow for the addition or removal of beneficiaries if necessary .

Cost of Registering a Share Trust

While the exact costs may vary depending on various factors, such as the complexity of the trust and professional fees, TrustNest Solutions offer an all inclusive fee for the drafting and registration of a trust at the Master of the High Court which avoids any financial surprises. 

Trust Deed Draft and Registration Fee

  • Drafting of the Trust Deed
  • Submission of Trust Deed at Masters Office
  • All document courier costs
  • 1 week turnaround time 
  • No hidden costs – once off payment

From:

R5 500

Register your Share Trust Today!

Begin the process of registering a Share Trust by completing the form below. As soon as we receive your request our office will be in contact with you.

Register Now!