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FBE2604 Assignment 2 Semester 2 2022

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Course FBE2604 - Forms Of Business Enterprise
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FBE2604
ASSESSMENT 2 – SEMESTER 2 – 2022
UNIQUE NO: NA

Question 1

Zwane, an entrepreneur, wants to create a trust for the benefit of his two
children, Samson and Zonke. He approaches you for advice on the legal
attributes of a trust, how a trust is created and what the two different types of
trusts are. Advise Zwane on two legal attributes of a trust, the forms that a trust
deed may take and what the two different types of trusts are. (6)



Question 2

List four advantages of a business trust. (4)




SOLUTIONS

Question 1

Trusts are created by virtue of a trust deed or instrument. To form a trust, the intention
to create a trust must exist. This intention or instruction to the trustee to manage the
trust assets for the beneficiaries must be expressed as an obligation in a written trust
deed. The trust must be established for a lawful purpose and the trust property must
be clearly defined. Beneficiaries of the trust must be clearly identified. At least one

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