Generic selectors
Exact matches only
Search in title
Search in content
Search Posts
Search in pages
Search Products
Filter by Categories
B-BBEE
Blog
Company Secretarial
Featured
General Business
General Interest
Investing in Property
Marketing
Personal Growth
Personal Wealth
Tax
Trusts and Estate Planning

Your trust should own all of your investment properties for two reasons –

  1. To protect them from your creditors, and
  2. more importantly in most cases, to protect them from the nightmare taxes that kick in on death.

So, how should the trust hold that property portfolio? Like this?

1TrustPropDirect

You see the problem? It’s that 45% tax that only leaves 55% to be re-invested back into the portfolio. Surely there’s a better way?

The solution is simple. We interpose a company between the trust and the properties –

1TrustCoProp

With this set-up, the company earns the income, pays 28% tax and has 72% to re-invest. Much better!

That’s why it is a fundamental of trust structures that trusts very rarely earn taxable income. In fact, we hardly ever register our trusts as taxpayers for that simple reason.

Need help with your Trust or Buisness?

Contact us today or set up a free meeting with our CEO, Derek Springett. We have been offering expert advice and business services since 1971. You can also visit our online store to see our full list of services.