WT and Others v KT (933/2013) [2015] ZASCA 9; 2015 (3) SA 574 (SCA) (13 March 2015)

WT and Others v KT (933/2013) [2015] ZASCA 9; 2015 (3) SA 574 (SCA) (13 March 2015)

The Supreme Court of Appeal held that the assets of the WT Trust, established prior to the marriage and managed by appointed trustees, do not form part of the joint estate of the parties married in community of property. The respondent was never a beneficiary of the trust, nor did she provide the necessary capital for the acquisition of the trust property. The court found no factual or legal basis for the allegations of deceit or misrepresentation by the husband. The principles governing piercing the trust veneer were not applicable, as there was no unconscionable abuse or fraud, and the respondent lacked standing as neither a beneficiary nor a third party transacting with the trust. The...

Citation
[2015] ZASCA 9
Parties
Appellant: WT; Appellant: WT NO; Appellant: GT NO; Respondent: KT
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
13 March 2015
Case Number
933/2013
Procedural Posture
Civil Appeal / Appeal From Gauteng Local Division, Johannesburg
Outcome
Appeal upheld. The assets of the WT Trust do not form part of the joint estate. Costs awarded to the appellants, except for costs related to preparation of the appeal record.
Judges
Lewis, Bosielo, Pillay, Mbha, Mayat
Legal Topics
Discretionary Family Trust, Joint Estate, Piercing Trust Veil, Marriage in Community of Property, Trust Property Control Act, Divorce Act Section 7 3
Family and Children Land and Property Discretionary Family Trust Joint Estate Piercing Trust Veil Marriage in Community of Property Trust Property Control Act Divorce Act Section 7 3

Case Brief

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Parties

WT

Appellant

WT NO

Appellant

GT NO

Appellant

KT

Respondent

Procedural Posture

Civil Appeal / Appeal From Gauteng Local Division, Johannesburg

Legal Issues

  1. 1 Whether assets of a discretionary family trust form part of the joint estate of parties married in community of property.
  2. 2 Whether the trust was the alter ego of the husband and thus its assets should be included in the joint estate.
  3. 3 Whether alleged deceit and misrepresentation by the husband justified inclusion of trust assets in the joint estate.

Ratio Decidendi

The Supreme Court of Appeal held that the assets of the WT Trust, established prior to the marriage and managed by appointed trustees, do not form part of the joint estate of the parties married in community of property. The respondent was never a beneficiary of the trust, nor did she provide the necessary capital for the acquisition of the trust property. The court found no factual or legal basis for the allegations of deceit or misrepresentation by the husband. The principles governing piercing the trust veneer were not applicable, as there was no unconscionable abuse or fraud, and the respondent lacked standing as neither a beneficiary nor a third party transacting with the trust. The...

Court Disposition

Appeal upheld. The assets of the WT Trust do not form part of the joint estate. Costs awarded to the appellants, except for costs related to preparation of the appeal record.

Orders

  • It is declared that the assets of the WT Trust with Master’s reference number IT11246/1999, established in October 1999 do not form part of the joint estate of the parties.
  • The action in this matter is postponed sine die to enable the value of the joint estate of the parties to be determined.