If a person is sequestrated the assets of the solvent spouse automatically vest in the trustee of the insolvent spouse unless the solvent spouse demonstrates that such assets are his or hers, e.g. because they were his or hers before the parties got married or were acquired in terms of a marriage settlement.
- A trust is an separate legal entity and is the product of a contractual arrangement called a Trust Deed, created by a donor in favour of beneficiaries to be managed by nominated trustees;
- A trust never dies or comes to an end unless it is terminated by agreement or is sequestrated if it is unable to pay its debts;
- If you are in business, are married in community of property, have signed surety in favour of a landlord, bank or supplier, you and your spouse are vulnerable if you or your business go belly up. You and your spouse can lose everything. This will never happen if the family assets are owned by a family trust.