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A short discussion on the nature and structure of a trust as well as its advantages and perceived disadvantages.

In the discussion below we are only going to focus on discretionary inter vivos or living trusts, where we will refer to this form merely as a trust.

Last modified on Thursday, 25 September 2014 11:14

Introduction
What is a trust? According to the definition given in clause 1 of the Trust Property Control Act 57/1988, a trust is the arrangement through which the ownership of property of one person is by virtue of a trust instrument made over or bequeathed to trustees or beneficiaries for the benefit of the class of persons designated in the said trust instrument. For the purposes of our Trusts we need only focus on the bequeathment applicable to trustees.

Last modified on Tuesday, 02 July 2013 08:51

The importance of keeping proper records of all decisions and transactions in a trust
The Trust Property Control Act (TPA) 57 of 1988 lays down certain criteria that trustees should adhere to in their governance of a trust. These criteria, in conjunction with the duties the common law has laid upon trustees and good practice when it comes to running a trust as such, is of the utmost importance for each and every trustee. If the trustees do not follow the criteria as laid down in the TPA nor adhere to the duties imposed upon them by the common law and ignore best practice when it comes to acting in their capacities as trustees, the trust they are acting upon may be negatively impacted.

Last modified on Tuesday, 09 July 2013 09:21

TWO TYPES

1. Estate Duty
2. Capital Gains Tax (CGT)

There are 2 types of taxes that is payable upon death. Firstly there is a capital gain tax payable due to the event of death, as the assets in your personal name are deemed to be sold to your deceased estate. Thus any asset of a capital nature that forms part of your estate may trigger this tax. The rate at which this tax is calculated and included is explained in the scenarios to follow.

Last modified on Tuesday, 02 July 2013 08:54

What is a Trust?

What is a trust? According to the definition given in clause 1 of the Trust Property Control Act 57/1988, a trust is the arrangement through which the ownership of property of one person... read more

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