In this article in the attorneys’ magazine, De Rebus, Sandile Khumalo argues strongly for the beneficial ownership regime, as it has been introduced to relate to trusts in South Africa, be set aside. Drawing on the case law, he explains that other than in the context of a bewind trust or the vesting or distribution of an asset in a beneficiary, the very concept of any individual being described as a ‘beneficial owner’ of a trust or acquiring a proprietary interest in trust property is alien to our common law on trusts.
Consequently, the beneficial ownership requirement is irrational, violates the constitutional rights of dignity and privacy of founders and beneficiaries, and ought to be reviewed and set aside.
Read the article here.
Sandile Khumalo, LLM (Unisa,) FPSA®, Advanced Dip in Trust and Estate Admin (UFS) is a fiduciary practitioner at Lex24 in Johannesburg.