by Shiniade Kenworthy An intervivos trust is a trust created during the lifetime of the Founder. A Testamentary trust is a trust created on the death of a Founder. A question that often arises is, why not simply create a testamentary trust and in that way the Founder does not have to administer and incur [...]
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In terms of the Financial Intelligence Centre Act, 2001 as amended (FICA) an “accountable institution” must register with the Financial Intelligence Centre in order to be compliant with the Act. Schedule 1, point 2, of FICA defines, as one of its accountable institutions: “a board of Executors or a trust company or any other person [...]
On registration of a Trust the Master of the High Court confirms in writing the appointment of the Trustees. Once appointed, the Trustees act in a fiduciary capacity subject to the terms and conditions of the Trust Deed. For a Trustee therefore to enter into a contract on behalf of the trust it is very [...]
By Shiniade Kenworthy It is common practice by entrepreneurs to have their trading entity own their business assets and in this way take advantage of the depreciation benefits. By housing your assets in the same entity which creditors and SARS could potentially have access to, you are unnecessarily exposing them to risk. Should your business [...]
By Ronel du Preez There seems to be some confusion regarding the consequences of the National Credit Act (NCA), which came into effect on 1 June 2007, and specifically the effect the act has on trusts. Firstly, it is feared that the act will effect whether you qualify for bonds for new properties and also [...]
1.A Trust is created by a contract, called a Trust deed which the parties sign and going forward have to adhere to. 2.The way the deed is drafted also determines its nature. The only type of Trust that we are concerned with in our structure is what is called a discretionary, non vesting Trust. This [...]
In this installment on our series on trusts we investigate the basics of what every financial planner, estate planner, attorney and tax practioner should know about trust owned policies. Trusts and the utility and use of Trusts have again become a hotly debated topic. The South African Receiver of Revenue, The Ministry of Finance and [...]
In essence, a trust is still the most efficient entity towards tax advantages. Firstly, by transferring all your assets to a trust, there is a huge saving on taxes payable at death. With no personal assets, there is no estate duty, no deemed disposal which trigger CGT and no transfer duty to transfer immovable properties [...]
For most of us Trust administration is as about exciting as prodding needles into our eyes, the reality is that this facet of being a Trustee is a MUST or there could be dire consequences for you as a Trustee or in your personal capacity. In order to highlight the radical ramifications of not doing [...]
Dear Trustee We trust you are well and prospering. In our infomail this month we tackle the harsh reality that most of us avoid thinking and acting, on the possibility of failure and our eventual mortality. We become paralyzed when we need to make crucial decisions and to take drastic action on important matters so [...]