If the donor has minor children or children who need the donor`s help, for example.B. Children with disabilities or at university may also be designated as beneficiaries of the trust. Sir Walter Scott wrote, „Oh, what a confusing network weave.“ Buyers who want to buy a business partly owned in a trust may face this tangle more than others. They ask, „Who do I make the deal with?“ and „What legal rights do I have if the deal fails?“ Since the trust was not a „legal person“, it had no contractual capacity and, therefore, no valid contract was concluded. As a result, the warranty obligation was not applicable. The first instance accepted Swanepoel. From a buyer`s perspective, one of the main concerns in conducting a transaction involving a trust is whether they will end up having someone hold them accountable if the transaction fails or if there are other issues. From a seller`s perspective, you need to keep this in mind to understand the risk of an agent in business transactions. The Court of Appeal had to determine whether Swanepoel`s contracts had been entered into in his capacity as trustee of the trust, although the word „agent“ was not mentioned. The main part of the document defines the primary purpose of the trust, including a complete description of the assets, conditions of the trust, and the situations in which the trust terminates. There is also information on the powers and responsibilities of an agent and the provisions relating to his remuneration. For example, in the South African case of Rosner against Lydia Swanepoel Trust [1998 (2) SA 123], it was decided that the request to amend the summons or written request would not be in bad faith or would not cause injustice or harm to the other party.
The Court held that such an amendment merely „gave linguistic effect to the legal rule that a trust does not have legal personality“. The person who benefits from the trust is a beneficiary. The beneficiary is entitled to the income and capital benefits of the trust. There are several categories of beneficiaries – the main beneficiary, the potential beneficiary (sometimes called the secondary beneficiary) and the remaining beneficiary. This article will help people on both sides of the coin assess their rights and risks in business transactions where trusts are parties in one way or another. While the trustee has considerable flexibility in the management of trust funds, there are specific requirements that trustees must meet. There are also implications for the misuse of the trust. If the trust loses money due to mismanagement or recklessness, the agent is held personally liable and must repay the trust. Beneficiaries have several legal rights related to the trust. For example, they may try to have an agent removed if the trustee mismanages the trust.
Examples of mismanagement are behaviors such as overspending of funds, reckless investments, or failure to record and record how they spent funds. . . .