Section 1 of the Income Tax Act No 58 of 1962 defines a trust as “any trust fund consisting of cash or other assets which are administered and controlled by a person acting in a fiduciary capacity, where such person is appointed under a deed of trust or by agreement or under the will of a deceased person.”
A family trust is a type of trust used to transfer property or assets from one person to another, with the parties in the trust being closely related also known as an “Intervivos” or living trust. Another Trust used is a “Post Mortem” Trust which is a Trust originating from a Deceased Estate. While it is like a will document, a family trust is distinct in many ways.
Family trusts can be set up for various reasons and they can be customised to your needs, such as:
- The protection and preservation of assets for the next generation.
- The protection of the interests of minors, the elderly or disabled beneficiaries.
- Charitable purposes or other special causes.
In South Africa, a family trust remains one of the most flexible vehicles to assist you in planning your estate and can provide you and your family with many advantages, both in the short and the longer term. Setting up a trust correctly and ensuring your trust documents are clear and unambiguous is paramount, and best left to qualified experienced Asset Protection Attorneys. Making the right decision requires sound advice and sound advice comes from experience.
Why not let Francois Uys Incorporated carry out a Family Trust Audit for you? We will check your Trust Deed, your Wills and Memorandum of Guidance, the status of your trust's assets and settlor debt, and any other related matters. Then we will provide you with a report and our recommendations.