Who should not form a trust?
The vast majority of South Africans should not form a family trust. They fall into five categories. So, if you fall into group 1 or 2 below or all of groups 3, 4 and 5, don’t waste your time, energy and money.
Don’t form a family trust if –
- You are not expecting to be reasonably wealthy (having income producing investments of R12m upwards) by the age of 65 or
- You cannot afford the fees to pay for a professionally designed Trust Deed or
- You don’t care if SARS takes between 32% and 60% of your wealth when you die and
- You don’t care about protecting your legacy and
- You don’t care about the possibility of your creditors attacking your assets.
If, on the other hand, you don’t fall into those categories, then the sooner you get started the better.