Page 8 - P6 Slide Taxation - Lecture Day 2 - Trust

Types of trust

• Second classification-rights of beneficiaries

• Vested right: beneficiaries are entitled to the

amount/assets and have a legal right to claim

it.

• Discretionary right: beneficiaries only have a

contingent right to the amount/assets and

vesting can take place:

• In terms of the trust deed

• In terms of trustees exercising discretion.

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