Beneficiary should die before die before dissolution

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beneficiary should die before die before dissolution of the trust, such beneficiary’s descendants will represent that beneficiary as capital beneficiaries. If the predeceased capital beneficiary leaves no descendants, he or she will be substituted by the other capital beneficiaries.” c) Discretionary trust: “Trustee F can choose the capital beneficiary(s), and the extent of their benefits, from my grandchildren.” ii. Bewind trust: (Beneficiaries own property which is subject to the trustee’s control) “I bequeath my assets to my child, Z. The assets must however be held in trust and be administered for Z’s benefit by my trustee, Mr G, in terms of the provision in clause 10.” b. The appointment of the beneficiary The beneficiary may be either a person for whose benefit the trust is intended or an impersonal purpose for which the benefit of the trust is intended. A beneficiary can be anyone even those unborn, minors, mentally ill, etc. The trustee and the founder can be the beneficiaries provided that such person is not the only trustee or beneficiary.
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CLS cc Succession Summary Critical Law Studies cc (c) 51 c. The nature of the beneficiary's rights In an ordinary trust – personal right In a bewinded trust – real right The insolvency of the trustee Generally the property vested in an insolvent person becomes part of his insolvent estate upon his insolvency. The question now arises what about an insolvent trustee? In the past, the legal position regarding the insolvency of the trustee was very uncertain, now: Section 12 - trust property shall not form part of the personal estate of the trustee except in so far as he, as trust beneficiary, is entitled to the trust property. Section 11 - the trustee must clearly identify trust property as such. The trustee must 1. indicate clearly in his bookkeeping the property which he holds in his capacity as trustee 2. if applicable, register trust property as such 3. make any account or investment at a financial institution identifiable as a trust account or trust investment 4. in the case of trust property other than property referred to in paragraphs (2) or (3), make such property identifiable as trust property in the best possible manner. THE TRUST FOR AN IMPERSONAL PURPOSE A trust for an impersonal purpose is a trust which is intended to be used for charitable purposes. (benevelant) Trusts which are to be used for charitable purposes are called benefits ad pias causas (for religious purposes). Trusts for charitable purposes differ from ordinary trusts in the following respects: 1. Such bequests are not allowed to fail (Ex Parte Methodist Church ) 2. power of appointment is permissible ( Braun v Blann and Botha ) 3. Where it is impossible to carry out the will of the testator to the letter, the court will allow the trust to be carried out ``cy preÁs'', or as nearly as possible.
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