Trust expert Phia van Spuy writes in Personal Finance about the importance of valid trustee resolutions, an area that has frequently been neglected in the past, prior to the more recent compliance requirements. She explains when a resolution is required and when it is valid. According to the courts, a resolution is technically required for each transaction, as they have held that a trust operates on the resolutions of its trustees (“Joint Action Rule”), and it is important that they are recorded.
Phia reminds readers that it is important to demonstrate that the trust is managed as a separate entity from the founder and its beneficiaries, and the adherence to proper trustee resolutions is an important of showing this. Trustees should constantly engage one another, record their decisions and employ the assistance of a professional trust service provider who employs proper systems to demonstrate compliance to protect the trust and its beneficiaries.
Read the full article here.
Phia is a chartered accountant with a Master’s degree in tax and a registered fiduciary practitioner of South Africa®, a Chartered Tax Adviser, a trust and estate practitioner and the founder of Trusteeze®, the provider of a digital trust solution.