Over the last few decades, many people had the honour of being asked to become a trustee of one of their friends’, family’s or acquaintances’ trusts. Whilst probably regarded as an honour at the time, no one could possibly have foreseen legislation changing to such a degree that you wish you had thought harder before accepting! Who would have thought it would become the onerous and risky position that it has become in 2025.
There is no escaping it and ALL trustees of all trusts find themselves in a position that ignoring could result in some nasty consequences. And even dormant or inactive trusts are no exception – trustees are liable for compliance lapses, regardless of the trust’s activity. Whilst ignoring these trustee responsibilities remains an option, the stakes of being held accountable for non-compliance is forcing more and more trustees to take action on either closing down the entity and stepping up to their fiduciary responsibilities. There is no alternative from here on out.
Trustees face increasing scrutiny over the management of their trusts. The Financial Action Task Force (FATF) is tightening its regulatory grip in 2025 and beyond. Whilst ignoring one’s responsibility has been the default response from many trustees, looming enforcement and massive penalties is making even the most innocuous trustee sit up and take notice. And claiming ignorance is not an acceptable excuse.
A large portion of trusts that were opened often years ago are no longer needed and no longer (or ever) served a purpose. Many of the trustees who accepted election as a trustee of these now dormant trusts are faced with the responsibility of closing these trusts down to obviate their own personal risks. What was previously an otherwise, complicated closure-process has been made easier by LEMS, specialists in the closure process. This is often considered to be the most logical decision by many trustees for their respective trusts – and can be done at a reaction of the cost of keeping an unwanted trust registered.
LEMS is an innovative, high- tech solution that revolutionises the traditionally complex process of closing a trust.
Designed to be user-friendly and efficient, LEMS transforms the initial onboarding from what could take weeks into a few simple steps. By answering just 16 questions on our electronic form, trustees can begin the closure process receiving instant clarity on their trust’s status and the way forward. The system generates a comprehensive, pre-populated starter pack of documents tailored to the specific needs of their trust.
For trustees burdened by dormant or obsolete trusts, there’s no simpler or faster way to close the chapter. With LEMS, you can release yourself from the looming penalties and obligations of managing a trust and move forward confidently, knowing compliance risks are a thing of the past.
For more information contact: Alan Hockey: +27 (0)71 673 9937 or
Brian Payne: +27 (0)83 309 1982 W: www.lemsystems.co.za
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