WHAT IS A TRUST?
A trust can protect your assets, because the trust become the owner of your assets and not you.
This means your creditors cannot get to your assets as it then no longer belongs to you
A trust is also a great tool to use to continue with business after sequestration
HOW DOES A TRUST WORK
A Trust needs a Donor to donate
something to create the trust, usually R100.
A Trust Deed is registered and the Trust is created
A Trust exists for the benefit Beneficiaries
A Beneficiary of a trust can be any person of any age
The Donor chooses the Beneficiares
A Trustee is similar to a Director of a Company
The Trust Deed prescribes what a Trustee can do or not do
OWNERSHIP OF THE ASSETS
At this point the assets are transferred to the Beneficiary and then the Beneficiary becomes the owner.
The trust will in this case not pay the tax so it will not pay 41% tax.
TRUSTS ARE A GREAT TOOL TO DO BUSINESS WITH AFTER SEQUESTRATION
A sequestrated person also does not want to hold assets in his or her own name after date of sequestration.
A trust can be used to overcome these problems.
TRUSTS PAYS 41% INCOME TAX?
It is possible to overcome this problem if the Trusts is managed well.
We have the experience to advise you on this.
Contact us now for a discussion.
TYPES OF TRUST
A Family Trust usually has the family members as the Trustees and Beneficiaries.
A Family Trust is also referred to as a “discretionary trust” which means that the Trustees has the discretion to transfer assets to a Beneficiary or not.
This makes it a valuable tool in tax planning”.
SPECIAL TRUSTS FOR MINOR CHILDREN
Special Trusts are usually created for children under 18 or persons with disabilities.
Special Trust enjoy certain tax benefits.
The trust must be managed in a certain way otherwise one can lose the tax benefit that is afforded to special trusts.
Business Trusts are generally not used by a family who simply wants to hold their assets in a separate entity,
but used by business owners as a specific mechanism to do business with.
This is usually a trust for big business owners as it is used purely for business.
PROTECTION OF ASSETS
If a Trust is managed well, you can do better business or be less worried about your creditors because you will know your assets are safe.
We will coach you on how to use your Trust to your benefit
Let Us Work Together
We are lawyers who are on your side and who make sure that you are fully informed. We also give online legal advice.