The Consequences of Making Loans to Trusts
Family trusts have long been a central feature of South African estate and wealth planning, with high-net-worth individuals using trust structures to protect assets and to save certain assets, particularly from estate duty. However, many taxpayers who hold substantial assets baulk at the idea of losing complete control over any assets that they may transfer […]
The benefits of creating a trust
Trusts are well-known to facilitate effective estate planning and continuity planning strategies. That said, setting up a trust – whether an inter vivos (between the living) or a testamentary (created in a will) − should be carefully considered and not just implemented blindly. The difference between testamentary and inter vivos trusts A testamentary trust is […]
The basics of Estate Duty
When a person dies, they leave behind an estate which includes everything they own. Estate Duty is payable on the estate of every person who dies and whose nett estate is in excess of R3,5 million. It is charged at the rate of 20%. Currently, SARS is responsible for collecting the Estate Duty of a deceased person. […]