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Testamentary Trust Registration

Do you need to Register a Testamentary Trust? Our Lawyer will draft your Trust according to South Africa’s Trust Act within 48 hours, and then register it ASAP.

The standard trust document in South Africa is called a Testamentary Trust Deed. Firstly it is (1) Drafted according to the Trust Property Control Act 57 of 1988 to regulate the governing of a Trust. The Trust can then be (2) Registered as a Legal Entity. After registration it must be (3) Added to your Will as part of your estate. This allows you to firstly control the benefits your family gets from your estate / income; and secondly get tax benefits in the process. Apply on this page or call us toll free for consultation.

 

Requirements for Trust Registration in South Africa.

1. A Minimum of 3 Trustees (Members) – in certain circumstances one needs to be ‘independent’.
2. An Auditor – We can assist*.

*You will need an official Trust Auditor on your Trust Deed, and after your Trust Registration is completed you’ll need specialised ‘Trust Accounting’. We have Trust Accounting Specialists who can assist with all the Accounting Maintenance required for a trust after registration. We will quote you in addition if you require these services.

 

Trust Registration Advantages

(1) Asset Protection & Tax Advantages.
A trust’s assets are protected within the entity, thus they cannot be attached if you or a Trustee becomes insolvent. In most cases, you will also gain Tax Advantages within the Trust Structure.

(2) Provide for you Family – but still keep your ‘hand on the wheel’.
Trust Registration protects the financial well-being of your dependents, whilst simplifying your estate administration when you are no longer able to do so yourself. Within the trust you can however spell out the rules.

 

Our Internal Attorney.

Our internal attorney, Tsitsi Kinnear, has over 6 years’ experience with Trust Drafting and Trust Registration. She also has a Law Degree from the University of South Africa.

Trust Price: R990 – R3490 (All Inclusive).

  • R990: Draft of Standard Trust Deed only.
  • R1990: Draft & Standard Trust Registration.
  • R3490: Custom Testamentary OR Business Trust*.

*Standard Testamentary (Family) Trusts is sufficient for most of our clients. If you however need a Trust with various special clauses or a Business Trust, our Attorney will have to draft a Custom Trust for you.

 

Timeframe: 2 + 20 Working Days.

  • 2 Days: Draft of Trust Deed.
  • 20 Days: Draft & Registration of your Trust Deed.

More Information on Trusts in South Africa

All Benefits of setting up a Trust:

  1. To administer and protect assets that are reserved for beneficiaries.
  2. The trust assets do not form part of your personal estate and are therefore not assets taken into account for the purpose of estate duty.
  3. The assets in the trust are protected from creditors & possible effects should you become insolvent in your personal capacity.
  4. There is continuity in a trust, the concept does not die. The trust assets are unaffected should one of the trustees pass away.
  5. To manage & pay income benefits to beneficiaries (your dependents).

 

Aspects to consider when setting up a Trust:

  1. It is recommended that there should be at least 3 Trustees of which one acts as an independent Trustee, usually a professional like an Accountant, Attorney or Auditor.
  2. The Trust may need Annual Financial statements compiled by a registered accountant or accounting officer. In addition tax returns would need to be filed to SARS.
  3. Minutes or resolutions needs to be kept upon any decision made in a trust.
  4. The trust would need a bank account to account for transactions by the trust.

 

All trust structures:

  1. The vesting or discretionary family trust: The founder and trustees agree to set up the trust, and the founder’s assets are sold or donated to the trust, creating a loan account. If assets are donated, the trust is subject to donation tax implications. The trust may also acquire other assets through purchase or inheritance.
  2. The business trust: The private business trust can be a discretionary trust or a bewind structure, which means that the trust capital holds vesting rights. In this case, the business trust is used primarily to carry on a business with the intention of making a profit.
  3. The charitable trust: Under the terms of the Income Tax Act, charitable trusts are not required to pay tax.
  4. Special trusts: A special trust may only be set up to protect the interests of someone who is described in the Mental Illness Act 18 of 1973 as mentally ill or who has a serious physical deformity.
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