Trust beneficiaries are usually natural persons, though a juristic person such as a company may also be the beneficiary of a trust. Despite its lack of legal personality, a trust can have legal capacity and the trustees may perform juristic acts as long as the trust deed allows this.
Is trustee considered owner?
A Trustee is considered the legal owner of all Trust assets. And as the legal owner, the Trustee has the right to manage the Trust assets unilaterally, without direction or input from the beneficiaries.
What is an example of a juristic person?
a body recognized by the law as being entitled to rights and duties in the same way as a natural or human person, the common example being a company.
Is a trustee a separate legal entity?
A trust is not a separate legal entity. The trustee is legally responsible for the operation of the trust and legally liable for the debts of the trust. However, the trustee is usually a company (a corporate trustee), which can reduce liability.
What are the characteristics of a juristic person?
The legal entity has a distinct existence, independent from its members or shareholders, it possesses property in its own name, acquires rights, assumes obligations and responsibilities, signs contracts and agreements, and can be sued or institute legal proceedings exactly like a natural person.
What is the difference between natural and juristic persons?
All human beings are referred to as natural persons and are thus legal subjects. Juristic persons, however, can be defined as certain associations of natural persons, such as companies and universities. 3 They are viewed as entities and are also considered to be “persons” and thus legal subjects in terms of the law.
Is a trust a legal entity or a juristic person?
In common law, a trust is neither a legal entity nor a juristic person. The trust is actually the Trustees acting in their capacity as such. However, there are exceptions to this basic legal concept, and these are brought about by specific Acts. I know of two such Acts –
Who is the appointed trustee of a trust?
In a trust arrangement, the appointed trustee is the person or entity with capacity to undertake these legal formalities. In assuming this function, the trustee acts as representative of the trust. The manner in which the trustee exercises this function is governed by the terms of the trust agreement and relevant local trust law. Holding Of Assets
Who can be a beneficiary of a trust?
Beneficiaries are those persons who are initially named by the founder in the trust deed and are subsequently selected by the trustees from time to time, in terms of the trust deed stipulations, set by the founder. Any natural person (unborn or alive) can be a beneficiary of a trust.
Who is the party with standing to sue a trust?
The trustee is the party with standing to sue and defend for and on behalf of the trust. A claim based on a contract entered into by a trustee in its representative capacity may be asserted against the trust only by proceeding against the trustee.
