oa De Rebus - The cession of an interest in a trust and transfer duty

Volume 1997, Issue 358
  • ISSN : 0250-0329



Does the cession by a beneficiary of a beneficial interest in an inter vivos trust which holds immovable property attract liability for transfer duty? The debate on this issue has encouraged the Receiver of Revenue to consider requiring the payment of transfer duty on such a cession. The purpose of this article is to persuade him that in most instances a cession would not be subject to the provisions of the Transfer Duty Act 40 of 1949 (the Act). It is established law that a trust is not a legal person and that the assets and liabilities in a trust vest in the trustee. A trust has been held to be a legal institution sui generis. The trustee is the owner of the trust property for the purposes of the administration of the trust but qua trustee he has no beneficial interest therein.

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