SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Establish and manage an inter vivos trust 
SAQA US ID UNIT STANDARD TITLE
119141  Establish and manage an inter vivos trust 
ORIGINATOR
SGB Banking and Micro Finance 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5  10 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This unit standard is intended for those persons who attend to the establishment of Inter Vivos Trusts. A person who is credited with this unit standard will be able to ascertain and analyse a client's requirements for the trust to be established, explain and give the client advice on the legal and fiscal implications of creating the proposed trust, draft and attend to the execution of the Deed of Trust and the registration of the trust. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
Prior to attempting this unit standard the learner should be competent in the following:

Unit standards:
  • "Describe different types of equity based investments" (12170)
  • "Describe the different types of interest bearing investments and compare these to securities"
  • "Demonstrate knowledge and insight of the FAIS legislation"
  • "Demonstrate knowledge and understanding of the Capital Gains Act"
    and
  • Communication at NQF Level 4 

  • UNIT STANDARD RANGE 
    N/A 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Ascertain and analyse the client's requirements for the trust to be created, including questions assessing the need for a trust. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The client's aims and objectives in establishing the trust are ascertained and analysed for practicality of achievement in the light of the client's circumstances and needs and taking the legal and fiscal effects as well as the requirements of the Financial Intelligence Centre Act (FICA) into consideration. 

    ASSESSMENT CRITERION 2 
    The identity of the proposed Settler of the Inter Vivos trust is ascertained from the client. 

    ASSESSMENT CRITERION 3 
    The Trustees of the Inter Vivos trust to be appointed and their powers and duties are decided after discussion with the client to meet with the client's and legal requirements. 
    ASSESSMENT CRITERION RANGE 
  • The number of Trustees
  • The identities of the Trustees
  • The discretions to be granted to the Trustees
  • The powers of investment to be granted to the Trustees
  • The disposal of income and capital
  • The remuneration of the Trustees
     

  • ASSESSMENT CRITERION 4 
    The name to be given to the Inter Vivos trust and the capital sum to be donated to the trust is determined through discussion with the client. 

    ASSESSMENT CRITERION 5 
    The proposed income and capital beneficiaries of the trust are identified in accordance with the client's wishes and legal requirements. 

    ASSESSMENT CRITERION 6 
    The terms and conditions of the trust are determined to meet the client's and legal requirements. 

    ASSESSMENT CRITERION 7 
    The proposed date or event on which the trust will terminate is ascertained in accordance with the client's and legal requirements. 

    ASSESSMENT CRITERION 8 
    Any assets to be transferred to the trust are identified through discussion with the client and the proposed method of transfer of such assets to the trust is determined to meet with legal requirements. 

    SPECIFIC OUTCOME 2 
    Ensure the client's understanding of the implications of establishing the trust. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The legal and fiscal effects of the terms and conditions of the proposed trust are explained to the client including any Capital Gains Tax implications. 

    ASSESSMENT CRITERION 2 
    The benefits, risks and opportunities arising from the creation of the proposed trust are explained and discussed with the client in the light of the client's aims and objectives and the financial, fiscal and legal effects. 

    ASSESSMENT CRITERION 3 
    The duties and responsibilities of the Trustees under the Law and the proposed powers and discretions to be granted to them are explained to the client in light of the financial, fiscal and legal effects. 

    ASSESSMENT CRITERION 4 
    The rights and obligations of the beneficiaries under the Law in terms of the proposed terms and conditions are explained to the client in the light of legal and fiscal effects. 

    ASSESSMENT CRITERION 5 
    Possible alternatives and any recommended amendments or additions to the proposed terms and conditions of the trust are explained and discussed with the client. 

    ASSESSMENT CRITERION 6 
    Methods of transferring the selected assets to the proposed trust are explained and discussed with the client in the light of the costs of transfer, Capital Gains Tax implications and the legal requirements. 

    ASSESSMENT CRITERION 7 
    The fees and charges applicable are agreed with the client and recorded in accordance with company-specific procedures and requirements. 

    ASSESSMENT CRITERION 8 
    The client's final instructions are recorded and agreed with the client. 

    SPECIFIC OUTCOME 3 
    Draft the trust deed. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The language used is grammatically correct, clear, concise and unambiguous in meaning. 

    ASSESSMENT CRITERION 2 
    The name of the trust, the Settler of the trust and the capital sum to be donated to the trust is reflected correctly in accordance with the client's instructions. 

    ASSESSMENT CRITERION 3 
    The beneficiaries to both the income and the capital are reflected in accordance with the client's instructions. 

    ASSESSMENT CRITERION 4 
    The Trustees to be appointed and the powers and discretions granted to the Trustees are in accordance with the client's instructions and legal requirements. 
    ASSESSMENT CRITERION RANGE 
    Security to be provided
  • Powers of investment
  • Powers of substitution
  • Powers of assumption
  • Powers of subrogation
  • Powers of resignation
  • Powers to borrow and lend
  • Voting powers
  • Discretions as to the disposal of income
  • Discretions as to the disposal of capital
  • The remuneration of the Trustees
  • Powers to make amendments
     

  • ASSESSMENT CRITERION 5 
    Directions as to the disposal of the income and the capital and any conditions attaching thereto are reflected in accordance with the client's and legal requirements. 

    ASSESSMENT CRITERION 6 
    The date or the event on which the trust will terminate in accordance with the client's instructions and legal requirements. 

    ASSESSMENT CRITERION 7 
    Provision is made for the signing of the Deed of Trust by the parties thereto and for the dating thereof in accordance with legal requirements. 

    ASSESSMENT CRITERION 8 
    The document, as drafted, meets with all the legal requirements of a valid and binding Deed of Trust. 

    SPECIFIC OUTCOME 4 
    Attend to the execution of the Deed of Trust and the registration of the trust. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The Deed of Trust is checked for completeness and accuracy against the client's instructions and legal requirements. 

    ASSESSMENT CRITERION 2 
    The terms and conditions of the Deed of Trust are fully explained to the parties to the trust in the light of the legal and fiscal implications. 

    ASSESSMENT CRITERION 3 
    The Deed of Trust is dated and signed by all the parties to the trust in accordance with legal requirements. 

    ASSESSMENT CRITERION 4 
    Any stamp duty payable in respect of the Deed of Trust is paid in accordance with the tariff applicable. 

    ASSESSMENT CRITERION 5 
    Any donations tax payable in respect of the capital sum to the trust is calculated and paid. 

    ASSESSMENT CRITERION 6 
    If the Trustees are required to provide security, the Bond of Security to meet legal requirements is obtained. 

    ASSESSMENT CRITERION 7 
    The original Deed of Trust is registered with the Master of the High Court and a copy is retained against payment of the registration fee payable. 

    ASSESSMENT CRITERION 8 
    Any fee and/or charges applicable are recovered from the client in accordance with company-specific procedures and requirements. 

    ASSESSMENT CRITERION 9 
    If a beneficiary of the trust is a non-resident, emigrant or immigrant, then all the necessary documentation required in terms of Exchange Control Regulations must be completed and recorded in accordance with legal requirements and company-specific procedures. 

    ASSESSMENT CRITERION 10 
    All documentation required in terms of FICA is completed in accordance with company-specific procedures. 

    ASSESSMENT CRITERION 11 
    The trust is registered as a taxpayer for income tax/VAT purposes in accordance with legal requirements. 

    SPECIFIC OUTCOME 5 
    Set up and manage a trust. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    A trust account is opened in the name of the trust and the capital cash sum is deposited into the bank account and recorded in the trust accounting records in accordance with company-specific procedures. 

    ASSESSMENT CRITERION 2 
    Custody is taken of all assets of the trust and such assets are transferred into the name of the trust in accordance with legal requirements. 

    ASSESSMENT CRITERION 3 
    The investments of the trust are analysed on a regular basis. 
    ASSESSMENT CRITERION NOTES 
    The investments of the trust are analysed on a regular basis to establish whether such investments:
  • Are in accordance with the investment powers granted to the Trustees
  • Meet with the terms, aims and objectives of the trust
  • Satisfy, as far as possible, the needs and requirements of the income and capital beneficiaries 

  • ASSESSMENT CRITERION 4 
    The investments of the trust are reviewed on a regular basis by the Investment Managers, appointed in accordance with company-specific policy and procedures, to establish whether any changes need to be made. 

    ASSESSMENT CRITERION 5 
    Any changes to the investments recommended by the Investment Managers following the investment review are referred to the Trustees for agreement and authorisation. 

    ASSESSMENT CRITERION 6 
    The sales and purchases of investments, to give effect to the changes recommended, are properly executed. 
    ASSESSMENT CRITERION NOTES 
    The sales and purchases of investments, to give effect to the changes recommended, are properly executed, in that:
  • The instructions are given in accordance with the recommendations made by the Investment Managers.
  • The correct procedures are followed in accordance with company-specific procedures.
  • The net proceeds of investments realised are collected and deposited in the trust banking account.
  • The transfer of the investments is properly affected in accordance with legal requirements. 

  • ASSESSMENT CRITERION 7 
    Adequate insurance cover is maintained over the assets in accordance with legal requirements and company-specific policy. 

    ASSESSMENT CRITERION 8 
    Fees charged are correctly calculated in terms of the applicable tariff and instructions for processing the taking thereof are given in accordance with company-specific procedures and noted in the trust accounting records. 

    ASSESSMENT CRITERION 9 
    The net income is dealt with correctly in accordance with the directions of the trust instrument as to the disposal of the income. 

    ASSESSMENT CRITERION 10 
    In respect of income distributed to the income beneficiaries. 
    ASSESSMENT CRITERION NOTES 
    In respect of income distributed to the income beneficiaries:
  • The distribution is in accordance with the trust instrument.
  • The portion of the net income due to each beneficiary is correctly calculated.
  • The distribution of the income is affected timeously in accordance with arrangements made with the beneficiaries.
  • The distribution is accurately noted in the trust accounting records in accordance with company-specific procedures.
  • The consequences of capital gains tax legislation is considered when making suggestions regarding income distribution. 

  • ASSESSMENT CRITERION 11 
    Accounts reflecting the transactions of the trust are prepared which satisfy legal requirements and are in accordance with company-specific procedures. 

    ASSESSMENT CRITERION 12 
    The trust income tax / VAT return is completed each fiscal year in accordance with the requirements of the South African Revenue Services. 

    SPECIFIC OUTCOME 6 
    Manage the relationships with trustees and beneficiaries. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Details of the Trustees and beneficiaries are recorded in accordance with company-specific procedures as well as the Financial Intelligence Centre Act (FICA) and Financial and Advisory Intermediate Services Bill (FAIS). 

    ASSESSMENT CRITERION 2 
    Meetings of the Trustees are arranged in accordance with the provisions of the trust deed and their requirements. 

    ASSESSMENT CRITERION 3 
    Instructions and directions given by the Trustees are implemented as and when required by them. 

    ASSESSMENT CRITERION 4 
    The remuneration of the Trustees is correctly calculated and paid when due. 

    ASSESSMENT CRITERION 5 
    The conditions and terms of the trust deed as well as the rights of the beneficiaries thereunder are fully explained to the beneficiaries. 

    ASSESSMENT CRITERION 6 
    The income requirements of the income beneficiaries are assessed in the light of the beneficiaries needs and circumstances and arrangements are made and agreed with the beneficiaries facilitating the distribution of the income to them on an agreed periodic basis. 

    ASSESSMENT CRITERION 7 
    Distribution of income to the beneficiaries are correctly calculated and affected on the basis agreed with the beneficiaries. 

    ASSESSMENT CRITERION 8 
    The Trustees and the beneficiaries are provided with copies of the trust accounts on the basis agreed with them and in satisfaction of legal requirements. 

    ASSESSMENT CRITERION 9 
    Disagreements or disputes with the beneficiaries are handled with tact and diplomacy and solutions are negotiated to resolve problems. 

    ASSESSMENT CRITERION 10 
    Regular contact is maintained with both the Trustees and the beneficiaries who are kept fully informed of any important developments or changes relating to the trust. 

    SPECIFIC OUTCOME 7 
    Terminate a trust. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Ascertain the reason for the termination of the trust and ensure that the correct documentation in each instance is obtained in accordance with legal requirements and company-specific procedures. 
    ASSESSMENT CRITERION RANGE 
    Death of the Settlor
  • Trust being transferred or renunciation of trusteeship
  • Death of beneficiary of financial income
  • Decision of Trustees
     

  • ASSESSMENT CRITERION 2 
    The capital beneficiaries and the proportions in which they are to benefit are correctly established with reference to the trust instrument and agreement is reached with the beneficiaries as to which assets are to be realised and which are to be transferred to the beneficiaries with consideration being given to the implications of capital gains tax legislation. 

    ASSESSMENT CRITERION 3 
    The sales of the assets and the transfer of the remaining assets to the beneficiaries are properly executed. 
    ASSESSMENT CRITERION NOTES 
    The sales of the assets and the transfer of the remaining assets to the beneficiaries are properly executed, in that:
  • Instructions are given in accordance with the agreement reached with the beneficiaries
  • The correct procedures are followed in accordance with company-specific procedures
  • The net proceeds of the assets realised are collected and deposited to the trust banking account
  • The transfer of the assets are properly affected and registered in accordance with legal requirements. 
  • ASSESSMENT CRITERION RANGE 
  • The sale and transfer of immovable property
  • The sale and transfer of stocks and shares
  • It is determined whether the assets are ceded or pledged. If ceded, refer to the Trustees for instructions
  • It is determined whether there are any outstanding recommendations of which orders have not yet been placed in the market and these are cancelled
     

  • ASSESSMENT CRITERION 4 
    A final distribution to the income beneficiaries of the net income received up to the date of termination is correctly calculated and is noted in the trust accounting records in accordance with company-specific procedures. 

    ASSESSMENT CRITERION 5 
    Final accounts, which meet with legal and company-specific requirements, are prepared for the trust. 

    ASSESSMENT CRITERION 6 
    The distribution of the final capital cash balance to the capital beneficiaries is calculated correctly in accordance with company-specific procedures. 

    ASSESSMENT CRITERION 7 
    The transfer of assets from the trust to the beneficiaries and income tax (including capital gains tax) is calculated and paid in accordance with legal requirements. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • An individual wishing to be assessed (including through RPL) against this unit standard may apply to an assessment agency, assessor or provider institution accredited by the relevant ETQA or an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA or with an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this unit standard or assessing this unit standard must be accredited as a provider with the relevant ETQA, or with an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Moderation of assessment will be conducted by the relevant ETQA according to the policies and guidelines for assessment and moderation of that ETQA, at its discretion, in terms of agreements reached about assessment and moderation between various ETQAs (including professional bodies). 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
  • The law relating to Trusts
  • Income Tax and Capital Gains Tax
  • Financial Intelligence Centre Act (FICA)
  • Prevention of Organised Crime Act
  • Promotion of Access to Information Act
  • Financial Advisory and Intermediary Services Bill (FAIS)
  • Law of Persons and the Laws relating to marriage and divorce
  • The laws relating to immovable property, in particular the sale and transfer thereof.
  • Stocks and shares and stock exchange procedures
  • All classes of investment
  • Stamp duty and the taxes, duties and charges applicable to the transfer of all types and classes of asset
  • The fees and any charges applicable and the method of recovery thereof
  • The institution's relevant policies and procedures
  • The institution's range of products 

  • UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO WORKING 
    The learner is able to work effectively with others as a member of a team, group, organisation and community when managing the client relationship and administering the account. 

    UNIT STANDARD CCFO ORGANISING 
    The learner is able to organise and manage self and activities responsibly and effectively 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, analyse, organise and critically evaluate information when maintaining the investment records and analysing the investment account 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively using visual, mathematical and / or language skills, both orally and in writing, when maintaining the relationship with the beneficiaries. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    Supplementary information:

    The legal requirements of:
  • The Financial Institutions (Investment of Funds) Act No 39 of 1984.
  • The Stock Exchanges Control Act No 7 of 1985.
  • The Prevention of Organised Crime Act
  • The Financial Intelligence Centre Act (FICA)
  • The Financial Advisory and Intermediary Services Bill (FAIS)
  • The Promotion of Access to Information Act
  • Estate Duty Act
  • Trust Property Control Act No. 57 of 1988.
  • Income Tax and Capital Gains Act
  • Law of Persons and Matrimonial Property Act (including laws relating to
  • Divorce)
  • The laws relating to immovable property, in particular, the sale and transfer
  • thereof.
  • Company Act
  • Wills Act
  • Law of Contracts 

  • QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  61589   National Certificate: Banking  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Chartall Business College 
    2. The Institute of Literacy Advancement 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.