Learn more

Trust

Trust

Trust formation and administration:

A trust is a separate legal entity which exists apart from the individuals who control it and benefit from it. It has its own bank account and submits its own tax returns. It has its own annual financial statements.

Advantages of a trust:

  • it cannot be attached by creditors unless it has signed surety
  • it provides savings on estate duties on assets upon your death
  • it allows assets to continue operating after your death as most trusts have a clause nominating a beneficiary or other person to become a trustee upon your death
  • it is an attractive vehicle in which to house and build assets
  • if it is a discretionary trust, the income received, and distributions made, may go to any beneficiary at the discretion of the trustee

Persons involved in trust:

  • settlor / donor – the person who donates a nominal sum to get the trust formed; this should be a close family member
  • trustees – control the assets of the trust; three is considered a good number, normally you, your spouse or good friend and an independent person being your attorney, accountant, business advisor or wise mentor
  • beneficiaries – those who benefit from the trust

Administering your trust:

  • Importance – sham trust
  • A new asset should be paid out of the trust bank account, it is then entered into the trust’s books of account
  • You can sell assets you own to the trust whereby you create a loan account and the trust owes you money; this requires a detailed explanation
  • Wills and estate planning
  • Trust formation and administration
  • Conveyancing and transfers
  • Specialised work in the commercial and agricultural sector (land claims included)

Contact us :
Contact us for more information.

Learn more