Can someone else temporarily stand in for you as a trustee?

~ Written by ~

Trustees are guardians of 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 stipulates the duties of trustees - section 9(1) of the act states that a trustee shall, in the performance of his/her duties and exercise of his/her powers, act with the care, diligence and skill reasonably expected of one managing the affairs of another.
A trustee’s active participation in trust matters is expected at all times.

How to build wealth within a trust

~ Written by ~

When you do estate planning, your goal should be to:

Protect the value of growth assets in your estate
Protect assets from forced sale by assessing the availability of liquidity in your estate
Reduce exposure to taxes such as Capital Gains Tax and Estate Duty
Limit estate expenses
Ensure the smooth transition of your estate on death

Perpetual existence of trusts a core benefit

~ Written by ~

You may have intended to create a trust to leave a legacy for your family, but a 'vanilla' trust deed may have been used that may not reflect your original intentions. Read your trust deed to find out if your intentions are reflected correctly.

Are there alternatives to physical trustee meetings?

~ Written by ~

It is not always possible for all trustees to meet. Certain trustees may even use this as an excuse to make decisions behind other trustees’ backs. As long as the trust instrument does not allow for methods which have the effect of contravening the common law, such as the abdication of powers and duties to anyone else, the trust instrument can determine which methods of participation is allowed, or specifically disallowed, such as the use of proxies, electronic or telephonic meetings.

Minor trust beneficiaries

~ Written by ~

Under South African law, a minor (a person under the age of eighteen) on his/her own, in general, cannot inherit because they do not have contractual capacity. Therefore, upon the death of a parent, assets bequeathed to a minor in terms of a will, or assets the minor inherits due to the parent dying intestate (without a will), are liquidated and the proceeds invested in the Guardian’s Fund (this fund forms part of and is being regulated by the Master of the High Court) at low interest, with limited access thereto, until the minor turns eighteen.

Trust taxes 101

~ Written by ~

The South African Revenue Service (Sars) will not tax amounts in excess of the total income or capital gains received by the trustees, nor will Sars tax more than one person on the same amount. Where income or capital gains is taxed in the hands of the trust, any subsequent distribution thereof will not attract tax in the hands of the beneficiary.

Considerations when you sell your assets to a trust

~ Written by ~

Many people attempt to move their assets into a trust after they have created wealth in their personal names. Moving your paid-up assets into a trust may be problematic, as it may cause various tax consequences.

Can your will compromise your wish to create a testamentary trust?

~ Written by ~

Most people delay addressing their wills because it is an emotional document to prepare. However, proper estate planning includes the drafting of a will, which complements your estate plan. It is critical to comply with all the requirements to draft a valid will, otherwise it may be open to attack.