How to register a trust

The administration of trusts is governed by the provisions of the Trust Property Control Act no 57/1988. There are two types of trusts – the living trust (inter-vivos trust) and the testamentary trust. The living trust is created by agreement between living people. They are useful for keeping assets for generations on end. The Founder … Read more

Wills and a trust

Your will is an essential part of estate planning, as it stipulates how you want your assets dealt with upon your death. Your estate refers to everything you own and owe, from property and cars to investments and debts. Efficient estate planning will ensure that your estate is set up in a tax-efficient way that … Read more

When should you create a trust?

If you are assessing when to set up a trust, you must first decide whether you want the trust to go into effect now, or upon your death. You can also make the trust revocable, which allows you to change the provisions of the trust at any point, or irrevocable, which means its terms cannot … Read more

Trust tax rates

For tax purposes, a trust is considered to be a separate “person”. A trust will be considered to be resident for tax purposes if it is incorporated, established, formed, or has its place of effective management in South Africa. Depending on the circumstances, trust income can be taxed in the hands of the donor, beneficiary, … Read more

Trust deeds

In South Africa, trusts are governed by the Trust Property Control Act of 1988 (TPCA). A trust’s constitutional document is a trust deed, which sets out the framework in which the trust must operate, including its powers and limitations. Trusts are registered by the Master of the High Court. The trust division of the Master’s … Read more

Transferring property into a trust

A trust is a legal entity consisting of a donor/founder, trustees and beneficiaries. The founder holds assets (without owning them) for the benefit of the trust beneficiaries. The trustees in fact become the legal owners of the property but have to manage it in terms of the trust’s provisions (which may only be altered in … Read more

The Trust Act in South Africa

In South Africa, trusts are governed by the Trust Property Control Act No. 57 of 1988 (TPCA). All decisions and actions taken by the trustees must be made with reference to the trust deed and the TPCA, which regulates certain administrative aspects relating to trusts. The TPCA document contains an in-depth description of the act. … Read more

The responsibilities of a trustee

A trust is a legal entity consisting of a donor/founder, trustees and beneficiaries. The founder holds assets (without owning them) for the benefit of the trust beneficiaries. In South Africa, trusts are governed by the Trust Property Control Act of 1988, and are registered by the Master of the High Court. All trustees have certain … Read more

The dos and don’ts of a family trust

Here are some recommendations for setting up a family trust. DO: access professional advice before considering whether a family trust will benefit your long-term wealth creation and protection goals. engage an independent professional (accountant or attorney) as one of the trustees. This way you can avoid the risk of breaking down the firewall between your … Read more

Registering a trust return through eFiling

In South Africa, trustees can register their trust return through eFiling by using the SARS eFiling system. This is a free, electronic service that allows individual taxpayers and businesses to submit tax returns and make payments in an online environment from their home or office. Once registered, users of the eFiling system can submit returns, … Read more