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 any one of these groups, 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.
- You don’t care if SARS takes between 32% and 60% of your wealth when you die.
- You don’t care about protecting your legacy.
- There is no possibility of your creditors attacking your assets.
- You cannot afford the fees to pay for a professionally designed Trust Deed.
If, on the other hand, you don’t fall into any of the above categories, then the sooner you get started the better.