INTERNATIONAL TRUSTS ACT, 1994 (Act 26 of 1994)

PART VIII

PROTECTIVE TRUSTS, CLASS INTERESTS
AND EXERCISE OF CERTAIN POWERS

50. The terms of an international trust may make the interest of a beneficiary -

(a) liable to termination;

(b) subject to a restriction on alienation or dealing; or

(c) subject to diminution or termination in the event of the beneficiary becoming bankrupt or any of the beneficiary's property becoming liable to arrest, seizure, forfeiture, expropriation, or similar process of law.

51. Subject to the terms of an international trust, where a trust is in favour of a class of persons -

(a) the class closes when it is no longer possible for any other person to become a member of the class; and

(b) where the interest of the class relates to income, and no member of the class exists, the income shall be accumulated and, subject to the proper duration of the international trust, shall be retained until a member of the class exists or the class closes.

52.(1) The terms of an international trust may be varied in any manner provided by the trust instrument.

(2) This section is in addition to the powers of variation by the court provided under Part X.

53.(1) Subject to the duration of the international trust, the terms of an international trust may direct or authorise the accumulation for any period of all or part of the income of the trust.

(2) Subject to subsection (3), income of an international trust that is not accumulated shall be distributed.

(3) Subject to the terms of an international trust and to any prior interest or charge affecting the trust property, the trustees may -

(a) where a beneficiary is a minor (whether or not the minor's interest is vested) -

(i) accumulate the income attributable to the beneficiary's interest pending attainment of full age;

(ii) apply the income or part of it to or for the maintenance, education or other benefit of the beneficiary;

(b) advance or apply for the benefit of a beneficiary part of the trust property prior to the happening of the event upon which the beneficiary is to become entitled to it.

(4) Subject to the terms of an international trust -

(a) any trust property advanced or applied under this section shall be brought into account in determining the beneficiary's share in the trust property; and

(b) no part of the trust property so advanced or applied shall exceed the beneficiary's vested, presumptive or contingent share in the trust property.

(5) The receipt of a guardian or custodian of a beneficiary who is a minor or a person under legal disability shall be a sufficient discharge to the trustees for a payment made to or for the benefit of the beneficiary.

54. The terms of an international trust may confer on the settlor, trustees or any other person power to appoint or assign all or any of the trust property or any interest in it, to or for the benefit of, any person (whether or not a beneficiary of the trust immediately prior to the appointment or assignment).

55.(1) An international trust and any exercise of a power under the trust may be expressed to be capable of -

(a) revocation, in whole or in part; or

(b) variation.

(2) A revocation or variation shall not prejudice anything lawfully done by a trustee in relation to the trust before the trustee receives notice of the revocation or variation.

(3) Subject to the terms of an international trust, where the international trust is revoked in whole or in part, the trustees shall hold the trust property, or part of the trust property which is subject of the revocation, as the case may be, in trust for the settlor absolutely or, if the settlor is dead, for the settlor's personal representative.

56.(1) Subject to section 4(3), the terms of an international trust may authorise the trustees to invest trust property in securities and investments with or without conditions or restriction.

(2) The powers of investment conferred by the terms of an international trust do not derogate from the duties imposed on trustees under Part V.