The Master Durban has alerted FISA members that when payments are made to the Master for trust registrations and applications for copies, the trust or estate name should be reflected. Although the Durban Master has sent the alert, the Directive is applicable to all Master’s Offices.
The Master Durban provided the following guidance:
Trust registrations
Please note that when paying Master’s fees for the registration of new trusts, the client must include the trust name in the payment reference (i.e., electronically when making the EFT). For example, if documents are lodged with the Pietermaritzburg Master’s Office for the registration of the ABC FAMILY TRUST, the reference for payment will be “MOHPMBABCFAMILYTRUST”. This is in terms of Chief Master’s Directive 1 of 2012 at paragraph 3.2(c)(ii).
The ICMS Trust System will generate a reference number only once the matter is captured for registration; at the same time, proof of payment is required for registration.
Further, according to our auditors, and we are of the same view, reflecting “MOHPMBTRUST” as a payment reference does not link the payment to a specific matter and is not in compliance with Chief Master’s Directive 1 of 2012. When clients use “MOHPMBTRUST,” there is always a likelihood that one payment will be used to register several trusts, which we have seen happen on many occasions. In addition, providing an affidavit confirming that payment was made for the registration of the trust does not cure the defect, as the payment still cannot be linked to the matter.
Applications for copies
The above also applies to the payment of Master’s fees for copies. Where the client is aware of the reference number, the payment reference must reflect the estate number, for instance “MOHPMBIT123/2026.”
In many instances, applications for copies of trust documents are requested at the same time as the registration of a new trust. In such cases, there is no IT number yet, so the application must reflect the full name of the trust, for instance “MOHPMBABCFAMILYTRUST”.
Chief Master’s Directive 1 of 2012 can be accessed here.