Trust

A trust is a legal arrangement where control over possessions is transferred to a person or organization for the benefit of someone else usually known as the beneficiary. You can register two types of trusts, commonly known as the inter-vivo trust and the testamentary trust.  The inter-vivo trust is formed between living persons, and the testamentary trust is derived from the official and valid will of a deceased person

  • Trusts are registered and administered by the master of the high court
  • Initially, trusts are pricy. Trusts are registered as a measure for estate planning and the protection of assets. Trusts also deals with the continuity of ownership
  • Trusts are not generic a specific Set of facts should be considered when registering a trust.
  • Trusts control how your wealth is dispersed/distributed or spread
  • Providing for your family after you are deceased

A Trust can assist you in preventing you from paying tax, thus ensuring that the beneficiaries get the complete and entire gift you desire to give to them.  Furthermore, the assets that are placed in trusts are removed from the estate and placed elsewhere. Which means the chosen asset will no longer be the trustee’s estate thus it is no longer subjected to the inheritance tax when you die.

  • The founder of the trust is the person who creates and establishes the trust
  • A trust must at least have one trustee, however, can have more than one trustee.

The purpose of a trust is to benefit the beneficiaries.