SO WHAT IS THE FUTURE OF TRUSTS?
One of the questions that we are most confronted with by our clients is what the future of trusts are in South Africa. Some questions even point to the misconception that the trust instrument itself as legal form is on the verge of being scrapped in South Africa altogether!The current debate raging is not at […]
ADVANTAGES AND DISADVANTAGES OF TRUSTS
Trusts have various advantages, but unfortunately there are also disadvantages. Although this is not a complete synopsis of all the pros and cons, our experience may assist you in making decisions about Trusts. Advantages: Growth taking place in the Trust assets settles in the Trust and not in your personal estate. By selling the assets […]
SO WHEN AM I AUTHORISED TO ACT AS TRUSTEE?
The Trust Property Control Act 57 of 1988 defines a trustee as meaning “any person (including the founder of the trust) who acts as a trustee by virtue of an authorisation under Section 6.”In the matter of Lupacchini vs Minister of Safety and Security (16/2010) [2010], ZASCA 108 (17 September 2010), the position of a […]
Trusts: Beware of interest-free loans
Major tax implication for Trusts (1 March 2017)The 2016 Draft Tax Amendment Bill introduces a new section to prevent Estate Duty and Donations Tax avoidance through the transfer of assets to a Trust on interest free loan account. Many trusts have acquired assets via a related party loan account (as opposed to a donation subject […]
WILL YOUR TRUST STAND UP TO SCRUTINY?
There are many benefits of having a family Trust, but most importantly they provide protection of assets from creditors, a shield from Estate Duty and control over preservation of the assets into the future. In order to ensure that these benefits are intact and maintained it is important to ensure that the administrative and authoritative […]
ADVANTAGES AND DISADVANTAGES OF TRUSTS
Trusts have various advantages, but unfortunately there are also disadvantages. Although this is not a complete synopsis of all the pros and cons, our experience may assist you in making decisions about Trusts. Advantages: Growth taking place in the Trust assets settles in the Trust and not in your personal estate. By selling the […]