trustees. Archives

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%…

We have been forming trusts for about 20 years. Many of them are formed with me as the Donor and my wife Helen and I as trustees. They are the put on the shelf to mature and be sold when someone needs a trust urgently or wants an old one. Then we change the trustees, beneficiaries etc. and usually leave me in place as the Independent Professional Trustee. And now, many years down the track, the Johannesburg Master has suddenly decided that the Donor cannot be the Independent Trustee. Not only did it take her and her predecessors about 20…

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…

trustees.

What happens to my trust when I die?

The Master no longer allows the trust founder to be the independent professional trustee

Trust basics