Assignment 2 Semester 2 2025
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Due Date: September 2025
QUESTION 1
1.1.
If the trust deed is silent on whether a beneficiary may dispose of his or her interest, the
common law position applies. Under South African trust law, unless there is an explicit
prohibition in the trust deed, a beneficiary is free to cede or transfer their rights in the trust to
another party. These rights can include vested rights (already accrued benefits) or
discretionary rights (potential future benefits) as long as the transfer does not conflict with
the trust’s terms or its purpose.
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