We advise our clients on various aspects pertaining to Trust Law.
There are two main types of trust:
- Mortis causa trust which is created in a will when you die.
- Inter vivos trust which you register at the Master
A trust is a separate legal entity with a legal personality. A trusts can own or purchase property, shares and other assets. A Trust has contractual capacity.
Why should you set up a trust?
1) Succession Planning:
A Trust survives the death of the person who set up the Trust. As such, it is a reliable way to ensure that your heirs will enjoy their inheritance without incurring debt in the form of Estate Duty. By holding assets in a Trust, the value of an estate is decreased. Any property owned by the Trust upon your death is excluded from the calculation of Estate Duty.
A Trust may hold assets in cases where the beneficiary is incapable of doing so due to incapacity (mental or physical).
3) Sequestration and creditors:
A Trust will protect your assets in the event of your sequestration and can also not be attached by creditors that might have judgements against you
Security of Minors- Should you die without a Testamentary Trust, your heirs under the age of eighteen are unable to inherit assets from your estate. Their inheritance is paid into the Guardian’s Fund. The inheritance is not maximized by investment and there have been issues with gaining access to the funds. A Trust will ensure that the inheritance is invested and will provide easy access to funds.
Contact Etienne Bedeker for Trust Registration services.