Under South African law, living trusts are considered taxpayers. Living trusts are subject to two types of taxes, income tax and capital gains tax (CGT). A trust pays 40% flat-rate income tax (individuals pay according to income criteria, usually less than 20%). However, the income from the trust can be taxed either in the hands of the trust or the beneficiary. A trust pays the CGT up to 20% (individuals pay 10%). Trusts do not pay estate tax on deceased persons (although trusts may be required to repay outstanding loans to a deceased estate, the amounts of which are taxable with the deceased`s inheritance tax). [42] Directors administer the affairs that deal with the Trust. The trust`s issues may include prudent investment of the trust`s assets, regular accounting and reporting to beneficiaries, filing necessary tax returns and other taxes. In some cases, which depend on the trust instrument, trustees must make discretionary decisions as to whether beneficiaries should receive assets in their favour. An agent may be personally held liable for problems, although fiduciary liability insurance, similar to the liability insurance of directors and public servants, may be acquired. For example, an agent could be held liable if the assets are not properly invested. In addition, an agent may be liable to its beneficiaries, even if the trust has made a profit but has not given its consent. [20] In the United States, however, a discharge clause may, like directors and officers, minimize liability; Although this was maintained earlier than against public order, this position has changed.

[21] Trusts have existed since Roman times and have become one of the most important innovations in real estate law. [3] The right of guardianship has evolved differently through court decisions in different states, so that the statements in this article are generalizations; It is difficult to understand jurisdictional jurisprudence. Some U.S. states adapt the trust code to codify and harmonize their trust laws, but there are still differences between states. No special language is required to add a „donation“ clause to a position of trust. On the contrary, the settlor must simply clearly recognize that the recipient`s ability to transfer his interest is limited. The agent is the rightful owner of the property with confidence, as an agent for the beneficiary, who is the fair owner (s) of the fiduciary property. Agents therefore have a duty of trust to manage the trust for the benefit of the right owners.