Should I keep my old trust or register a new one?
I often meet with someone who registered a trust a few years ago and never used it. They now realise the benefits of building their wealth in a trust structure and wonder whether they should use the old one or create a new one.
Advantages of a new one:
- It can be registered at the Master’s office in Johannesburg. This is the only Master’s office that we are aware of that is actually functional right now (although things may change). Also, we have a dedicated postbox in their office. So, it is much easier to deal with them than others.
- The procedure is a lot simpler, so there’s less chance of a snag arising and delaying the process.
Disadvantages:
- There is no cost saving as the fee is the same.
- A Beneficial Ownership return must have been done for both the old one and the new one.
- The new trust has to be registered as a taxpayer at SARS, even if it will never earn taxable income.
- If the old one is registered as a taxpayer, then Nil returns will still have to be done unless you deregister the trust as a taxpayer at SARS.
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