The new trust IT3(t) to be submitted to SARS by 30 September 2024 - 3 July 2024

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Many boards of trustees, now third-party data providers to the South African Revenue Service (SARS) through reporting beneficiary distributions, remaining ultimately responsible, are turning to their accountants/tax practitioners for guidance. These professionals play a crucial role in navigating the complex information required for the IT3(t) form, which can only be submitted once the trust financial statements are finalised. If done properly and correctly, it takes a great effort to create correct, complete trust information in a format that facilitates the unique trust tax treatment described below. The IT3(t) is just one of several returns to be submitted to SARS, reflecting income and capital gains generated by the trust.

Solving for the trustee conundrum in generational wealth transfer trusts - 5 June 2024

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When a trust is registered, typically the patriarch or matriarch estate planner plays a role in the trust – that of the founder and/or trustee. That gives them some insight and/or influence over the trust’s affairs.

Are you aware of possible double taxation as a result of trust distributions? - 30 May 2024

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Many trustees are advised to distribute all trust income and capital gains to beneficiaries to escape the high tax rates in trusts. Even though a trust carries the highest Income Tax rate (a flat rate of 45%) and Capital Gains Tax rate (a flat rate of 36%), when trust distributions are considered, cognisance is not taken of the ‘knock-on’ effect of potential further taxes that it may trigger.

IT3(t) - THE KNOW-HOW WEBINAR - SLIDES AND RECORDING

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Thank you for your time attending the webinar on IT3(t)’s. If you could not attend, at least you can still catch up.

Can someone ‘stand in’ for you as trustee? - 9 May 2024

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Often trustees do as they wish and are not aware of (or ignore) the fact that they have to abide by the instructions of a trust deed; it being a contract between the trustee/s and the founder/s. Many have never even read the trust deed. Many trustees also do not understand the unique nature of a trust and the outcomes of relevant court cases, which apply to them as trustees. Conflict between the trustees often complicates matters.

Trustee insurance – what is covered? - 29 April 2024

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Trustees’ roles and responsibilities are often misunderstood, and so are the risks associated with trusteeship. With the recent changes in trust law in South Africa, it has become more important than ever for trustees to work together and manage their risks as a collective, as one trustee’s non-cooperation may expose their co-trustees.

Family trustees may be the ones left exposed - 17 April 2024

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All trustees are the guardians of the trust assets and have a duty to manage these assets in the best interests of the beneficiaries, as outlined in the trust deed. The Trust Property Control Act (“the Act”) clearly stipulates the duties of trustees. Section 9(1) of the Act states that a trustee shall, in the performance of their duties and exercise of their powers, act with the “care, diligence and skill” which can reasonably be expected of a person who manages the affairs of another person.

The trust beneficiary can of worms - 4 April 2024

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Who would have thought that the way beneficiaries are defined in a trust deed and the rights provided to them (or not for that matter) have a bearing on so many things – whether a beneficiary has any rights worthy of protection, whether they can ask for trust information, whether they can insist on the proper administration of the trust, whether they are entitled to any benefits, whether they have to be included in “beneficial owner” reporting to the Master and SARS, and so on.