Trust Registration Namibia

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Trust Registration Namibia

We assist you with Trust Registration Namibia. The Trust Moneys Protection Act 34 of 1934 defines a trust as a structure into which property is transferred, and administered by trustees, on behalf of one or more beneficiaries. We assist you with the process for your trust registration Namibia. Contact us today so that we can assist you. The structure of a Trust consists of the following:

  • Founder/Donor – Person who forms a trust to transfer ownership of funds/assets
  • Trustees – Those who administer and control the trust’s assets for the beneficiaries
  • Trust – Entity that holds trust property. The Trust Deed is required to register the trust, and it must be drafted according to the Trust Moneys Protection Act 34 of 1934 to regulate the governing of a Trust.
  • Assets – Trust property, assets, or funds, transferred to trust by donation, sale or on death
  • We charge a flat fee of ZAR5,500 for Trust registration Namibia, regardless of whether you need a custom trust deed or a standard trust deed.
Standard Trust Registration
Once Off
ZAR5,500
Suitable for family trusts, business trusts, charitable trusts etc
Custom Trust Instrument/Trust Deed
Standard Trust Instrument/Trust Deed
Trust Registration at Master of High Court
Trustee Letter of Authority
Registration Fees at Master of High Court
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Download and complete the form below in full, and email it to: [email protected]/[email protected]

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TRUST REGISTRATION APPLICATION FORM – NAMIBIA

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Types of Trusts

There are numerous ways of describing trusts or trust types in Namibia, and they are not necessarily mutually exclusive. Therefore, depending on how the trust is structured, there may be overlaps, and a trust may be categorized, for example, as a discretionary, Inter Vivos, family trust. Some of the several types or categories of trust (which may overlap with each other) are described below.

  • Ownership Trust

    The Trust Moneys Protection Act 34 of 1934 refers to such a trust, and describes it as " the arrangement through which the ownership in property of one person is by virtue of a trust instrument made over or bequeathed to another person, the trustee, in whole or in part, to be administered or disposed of according to the provisions of the trust instrument, for the benefit of the person or class of persons designated in the trust instrument, or for the achievement of the object stated in the trust instrument." These are the typically discretionary family trusts.

  • Curatorship Trust

    Similar in structure to a bewind trust, except that the assets are administered on behalf of a beneficiary who does not have the capacity to manage his/her own affairs

Trusts based on time formed

  • Inter Vivos (Living) Trust

    This is a trust created during the founder’s lifetime. It is established by a trust deed which sets out who the founder, trustees and beneficiaries are, defines the powers and duties of trustees and how and when the trust is to be wound up. The founder may also be co-beneficiary and /or trustee. The founder usually donates assets to the trust. There are various kinds of Inter Vivos trusts that can be set up, depending on their purpose, for example, family trusts, charity trusts (formed with an impersonal object), empowerment or employee trusts and business trusts.

  • Testamentary (Mortis Causa) Trust

    Testamentary (Will) trusts are created by a trust clause in a Last Will and Testament, in which the testator bequeaths assets to the trust and stipulates the terms and conditions which will apply to the trust. A testamentary trust only comes into existence upon death of the testator. If, for any reason, the Will is invalid, the trust will not come into effect (the Master of the High Court therefore has the power, in this case, to declare a testamentary trust invalid - unlike an Inter Vivos trust, where the Master of the High Court has no such power).

Trusts based on beneficiaries rights

  • Discretionary Trust

    This type of trust gives the trustee(s) discretionary powers as to how, when, and how much to allocate of the income or capital of the trust to the beneficiaries. The beneficiary does not have a vested right to the income until the trustees have exercised their discretion, and paid over the benefit to the trust beneficiary, but only have contingent rights to the income, assets, or net trust capital of the trust.

  • Vested (Vesting) Trust

    Here the trustees are not given any discretion in the deed, and the beneficiaries and their benefit(s) are fixed and predetermined. Any income (both of a revenue and capital nature) or assets of the trust are vested in the beneficiaries. The beneficiary has a vested right to the income and capital, which cannot be contested by anyone else. In the event of the death of the beneficiary prior to payment, the deceased beneficiary’s interests are transmissible to his heirs, and these must be included in his estate for estate duty purposes.

Trusts based on the purpose

  • Family (Private) Trusts

    These can be testamentary or inter vivos trusts. Their main objective is the protection and maintenance of trust property, for the benefit of minor children, or family relations of the founder.

  • Asset-Protection Trusts

    Asset-protection trusts include a wide range of legal structures which are set up in an attempt to mitigate the effects of taxation, divorce and bankruptcy on the beneficiary. Any form of trust which provides for trust property to be held on a discretionary basis falls within this category, e.g. a family trust which is designed to secure the interests and protect the property of a group of family members.

  • Empowerment/Employee Trusts

    These are inter vivos trusts formed to empower staff and give them the chance of meaningful participation and “ownership” in the business venture.

  • Offshore Trusts

    The term offshore trust describes a trust which is set up in a tax haven jurisdiction. In South Africa the term includes any non-South African or non-resident trust that has its place of effective management outside the Republic. There are both tax advantages and disadvantages with regards to offshore trusts and in South Africa there are both general and specific anti-avoidance provisions that can negatively impact the use of offshore trusts.

  • Business/Trading Trusts

    These are inter vivos trusts formed to carry on the business with a profit incentive. The trustees should be independent of the beneficiaries. Business Trusts: May be either public or private; Beneficiaries enjoy limited liability trading; Administration is less complex and less expensive than a company or close corporation; Trustees may each individually face personal liability in the event of recklessness or failure to exercise reasonable care and skill.

  • Charitable Trust

    This is a trust set up for charitable purposes and may qualify for exemption from income tax and Capital Gains Tax provided that: It carries on an approved public benefit activity; It is registered as a Public Benefit Organisation by the SARS Tax Exemption Unit; Donations to a charitable trust which fulfils the regulatory requirements will also be exempted from donations tax.

The Independent Trustee

The way in which the trust deed is drafted is important, and the way in which the trust and the trust assets are administered. It is an abuse of trust where a person creates a trust, transfers assets to the trust, and then treats the trust assets as though they were his own. The appointment of a truly independent trustee is a true reflection of a founder’s intention to create a valid trust. It is thus advisable that at least three trustees, one of whom is completely independent, are appointed to act as such, so that the founder (who may be a trustee and a beneficiary) will have a minority vote.

In Land and Agricultural Bank of South Africa v Parker (2005), the Court suggested that each family trust should appoint an independent trustee. And in March 2017, the Chief Master issued a directive which sets the requirement for the appointment of an independent trustee for all trusts which are defined as “family business trusts”. This is typically a trust set up for the protection of family assets, where the trustees are all beneficiaries, and they are all related. If no independent trustee is appointed for such a family business trust, the Master of the High Court will refuse the registration of the trust. The Master requires the independent trustee to sign a Sworn Affidavit upon his appointment.

Documents Required

  • Original trust deed or notarial certified copy

  • Acceptance of Trusteeship

  • Acceptance of Auditor

  • Beneficiary declaration

  • Trustee(s) Identification

  • Founder(s) Identification

  • Trustee(s) Representative Identification

    Mandatory for Organisation Trustee(s)

  • Beneficiaries Identification

  • Trustee(s) Phone, Address, and Email

  • Founder(s) Phone, Address, and Email

  • Representative(s) Phone, Address & Email

  • Bond of security by the trustees

    If required by the Master of High Court

  • Final Certified Court order

    If required by the Master of High Court

Ready to register your company?

Purchase your once-off Trust registration today by clicking the “Order Now” button from the pricing tables above. You can also speak to one of our agents for more information using the details below:

NAMIBIA

Phone: +264 81 418 2034
WhatsApp: +264 81 418 2034
Email: [email protected]
WhatsApp Link: click here
Website: https://gfi-group1.com

SOUTH AFRICA

Phone: +27 67 286 0786
WhatsApp: +27 67 286 0786
Email: [email protected]
WhatsApp Link: click here
Website: https://gfi-group1.com/

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