The importance of having a Replacement Trustee

by Eduan Botha

Replacement Trustee

There is an old saying; “the only thing that is certain in life is death and taxes”. You will most certainly be aware of the latter part of this saying seeing as it is one of the major reasons you are part of the Wealth Masters Club. The former part, however, is often neglected, and this has absolute dire consequences.

Picture yourself spending years building your trust structures, purchasing properties, making investments and focusing on creating that everlasting wealth for generations to come. Then, all of the sudden, the unthinkable happens, you pass away.

By law, your Independent Trustee may now only perform one action and that is to appoint a trustee to replace you. Nothing else may be done until the new trustee has been appointed. Easy right? Well, actually no. Human relationships are complex and your Independent Trustee will most likely not be in the loop regarding whom you get along with, who you trust and who not.

You want your wealth and legacy to be in the hands of a person you can trust with your own life as it needs to exist into perpetuity to the benefit of future generations. Your Independent Trustee will be able to make sure that every trust decision is legal and within reason, and the administration of the trust is up to the required standards. But you need someone to continue to grow your legacy, just as you have been doing while you were alive.