South Africa Trusts - Trust the Trusts! Trust in South African Asset Protection Trusts
September 8, 2004
By Michael Joseph
Does South Africa have asset protection
in the form of trusts? The answer is yes, yes they
do, and in fact trusts have been used in South Africa
for well over a century and have survived many changes
in government, two world wars, a changing economic
landscape and the wrath of the South African Revenue
Services.
It would seem obvious that trusts are
in South Africa to stay, and many business owners
and individuals alike would have no other way.
Why use a trust to protect your assets? Well, to answer
that question I have to explain what a trust and what it does. A
trust is asset holding mechanism for the benefit of another. Like
a living will, money is held in trust until certain stipulations
are satisfied, like reaching a certain age, marriage, and just about
anything else. Essentially, you would have a trust formed for the
benefit of a family member like a child or children.
Who is involved in a trust? Well, the man players in a trust are
the board of trustees which include the estate planner, and the
person who started the trust known as the donor, founder, and settler.
Next are the beneficiaries, which include income beneficiaries and
capital beneficiaries. The difference between the two is the capital
beneficiaries receive the amount of the trust, while the income
beneficiaries receive as the name implies an income from the trust.
Also included in the trust is an accountant and if a bank accountant
is opened by the trust then a bank manager is included within the
trust though this is unnecessary.
There are in fact a large number of different types of trust to
choose from based on your needs. Some of these are trust mortis
cause, and trust inter vivos. Choose the one that fits your needs
and go for it.
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