Harbour & Associates

Many people worry about what will happen to their family trust when they die, but interestingly, it is on death that the trust proves its greatest benefits. It is, after all, a device in which to build (and protect) wealth so that when you die, there are no taxes to pay and the wealth that you built during your lifetime is there as a legacy for your family and for future generations. So let’s look first at what doesn’t happen when you die – the trust pays no tax as a consquence of your passing. Compare this to the 35%…

I get to read lots of trust deeds, occasionally one will be well written, but most are just the usual copy and paste stuff by someone who doesn’t apply his or her mind to the job. Here’s what you should be out looking for – 1) If the founder is your parent and not you, ask the person who drafted the deed why that is. If they tell you it is in case the trustees want to award you, as a beneficiary, a fixed property and because there is some doubt as to whether you are a relation of yourself…

Most people who come to see me about forming a trust want either just their children or perhaps themselves and their children as the beneficiaries. Is this a good idea? No, and here’s why you shouldn’t do it – If a trust has no beneficiaries, then the High Court has to decide what happens to the trust assets and it sometimes awards them to the State and that means that if you, your spouse and children all die in the same accident (which, unfortunately, is not beyond the bounds of possibility), then JZ and his cronies get another windfall. So…

Many of you would like to the know fundamentals of a trust before we get into the detail. So here goes in the form of FAQs What are the benefits of having a trust? You’ll save as much as 38% of your wealth on death that would otherwise be paid in taxes. The trust assets are protected from your creditors. What taxes does the trust pay as a result of my death? None. What taxes would my estate pay on my death if I didn’t hold my assets in a trust? Estate Duty on the value of those assets at…

beneficiaries

What happens to my trust when I die?

Seven things to look for in a trust deed

Who should be beneficiaries of my trust and why?

Trust basics

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