Your debtor owes you a fortune, but when his estate is sequestrated there is nothing in his own name. However you find out that he is trustee of a wealthy family trust with lots of assets that you think are really his – can you recover from his trust?
The answer is yes, you can, but only in certain circumstances, and only by choosing the right line of attack. A recent Supreme Court of Appeal (SCA) case illustrates.
A Ponzi scheme, a suicide, and R11m worth of missing cattle
Attacking a trust 101
If you decide to attack a trust directly, you can ask a court to declare that trust assets be treated as your debtor’s personal assets. Per a 2014 High Court decision, you need to distinguish between two different lines of attack here. Either –
Which line you should follow is a highly technical decision – ask your lawyer for specific advice.
This article is for general information purposes and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us At DKVG Attorneys for specific and detailed advice.
For more information, contact our Insolvency Law department
© DotNews, 2005-2018. This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
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