A Trust is defined as a legal institution
where a trustee, in accordance with the express intentions
of the donor or founder, has the right to the property,
subject to the fact that he may only utilise the goods
exclusively for the benefit of beneficiaries.
Trusts may be created in a Deed of
Trust, a will or a Nuptial contract (ANC).
Trust assets should be defined, and
may include movables, immovable's (like land or houses)
or intellectual property.
Trust creation is a formal process,
and requires lodgment of the trust deed with the Master,
and trustees may only act once they receive letters of
authorization from the Master.
So what are the advantages
of forming a trust?
Trusts assist in reducing income tax
as the Trust cannot be taxed on income earned from the
trust assets. Estate Duty can be drastically reduced since
the trust assets do not form part of the calculation for
Donations tax - donations to a Trust
are donations tax exempt if the trust property is kept
in the trust as long as the donor lives.
Should you have any questions related
to this topic, or wish us to create and register a trust
for R4500.00 feel free to Contact