Trusts can play an important role in modern day business planning, but care needs to be taken when setting up a Trust – especially now that SARS are starting to pay more attention to Trusts.

We can assist you with the following :

• Consultation on the working of a Trust and on the Legal requirements
• Preparation of a Trust Deed
• Registration of the Trust Deed by the Master of the Supreme Court
• Acting as a Professional Trustee
• Ensuring that the Trust’s books are kept up to date in terms of the Trust Deed and Tax Act
• Ensuring that all the legal requirements are met by holding timeous Trustees meetings and by ensuring that the Trust Deed stipulations are being followed to the letter.

In essence a trust is a contract between the donor, the trustees and the beneficiaries whereby the donor appoints the trustees to look after the trust assets for the benefit of the beneficiaries.

The tax implication with regards to trusts is that the donor, trust or beneficiaries can be taxed depending on how the trust deed was drafted.

Worst case scenario is that the trust income is taxed within the trust which will result in the trust being taxed on its taxable income at 40%.

The proper initial setup and planning of a Trust Deed is of extreme importance to avoid issues at a later stage.