Curbing the abuse of trusts : is the independent trustee the solution

Abstract

Over the course of the last three decades the trust as an institution has become subject to abuse by trustees and founders alike. The courts have shown their aversion to such abuses by recommending various safeguards to protect the trust from being abused. In Land and Agricultural Bank of South Africa v Parker, Cameron JA suggested that the solution to preventing trusts from being abused is the introduction of an independent trustee . This contribution looks into the history of abuse of trusts in South Africa, the aspects and rationale of the Parker decision and the introduction of the independent trustee . The fiduciary nature of the trustee s office and the fiduciary duties a trustee holds is analyzed and is used to investigate possible alternative solutions to prevent the abuse of trusts.Die trust as n instelling is oor die laaste drie dekades gereeld misbruik deur trustees sowel as stigters van trusts. Die howe het hul misnoë hierteen uitgespreek deur verskeie veiligheidsmaatreëls teen hierdie misbruik voor te stel. In Land and Agricultural Bank of South Africa v Parker het Cameron JA voorgestel dat die oplossing teen trustmisbruik die aanstelling van n onafhanklike trustee is. Hierdie tesis ondersoek die geskiedenis van die misbruik van trusts in Suid Afrika, die aspekte en rasionaal van die Parker beslissing en die bekendstelling van die onafhanklike trustee . Die fidusiêre aard van die amp as trustee sowel as die verpligtinge wat n trustee het word ondersoek en voorgestel as alternatiewe oplossings om die misbruik van trusts te voorkom.