YOU MAY NEED A TRUST IF :
TYPES OF TRUSTS :
In South Africa, there are three types of trusts :
Testamentary trusts are created at the winding up of a deceased estate following a specific stipulation in the deceased person’s Will that a trust must be set up. Testamentary trusts are usually created to hold assets on behalf of minor children, since minor children cannot in terms of South African law, inherit anything (in the absence of a trust, assets from the deceased estate left to minor children are sold, and the money is paid to them when they reach adulthood).
Bewind trusts are created as trading vehicles providing trustees with limited liability and certain tax advantages.
There are two types of Living trusts in South Africa, namely Vested trusts and Discretionary trusts. In Vested trusts, the benefits of the beneficiaries are set out in the trust deed, whereas in Discretionary trusts the trustees have full discretion at all times about how much each beneficiary is to benefit.
PARTIES TO A TRUST :
Trustees – the trustees are the custodians of the assets in the trust, but do not necessarily have an interest in the assets. In order to promote the independence of the trust, it is advisable to appoint at least one independent trustee
Beneficiaries – the beneficiaries are the individuals / entities entitled to benefit from the trust’s assets or income
Donor / Founder – person setting up the trust
BENEFITS OF A TRUST :
The two main advantages of having assets in a trust are :
TAX CONSIDERATIONS (FOR TAX YEARS COMMENCING 01 MARCH 2016) :
HOW DOES A TRUST ACQUIRE ASSETS?
Assets can be transferred into the living trust by:
DISADVANTAGES OF A TRUST
A trust is deemed to be a separate legal entity. As such, the following are required annually:
From the above it is evident that a trust is not suited for every individual.
For more information or enquiries, please contact a consultant on (041) 373-2710 or firstname.lastname@example.org