What Does Being a Trustee of a Body Corporate Entail (Part 3)
In this article, we look at who chairs a meeting of trustees and the method of voting on resolutions passed at such meetings. The rules state that if there are only two owners, such as a duet sectional title scheme, then they would have to decide on a method between the two owners to possibly […]
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 […]
When Is a Trust Not a Trust?
When can the provisions of a trust deed be set aside? When you don’t stick to the rules. Far too many people pay their accountant or attorney a visit, draw up a boilerplate trust deed, sign on the dotted line, and think that this piece of paper will take away all their tax and estate […]
Awareness campaign: Registration of trusts for tax purposes
SARS has embarked on a path to rebuild its organisational capability and restore institutional integrity. In line with SARS’ Vision 2024 and beyond, we highlight the following: Higher Purpose: Enabling the government to build a capable state and foster sustainable economic and social development that serves the wellbeing of all South Africans. Vision 2024: A […]
Interest free loans and trusts
The recent introduction of section 7C to the Income Tax Act brought the taxation of trusts, and the funding thereof specifically, under the spotlight again. Briefly, section 7C seeks to levy donations tax on loans owing by trusts to connected parties (typically beneficiaries or the companies they control). To the extent that interest is not charged, […]
Trust litigation – Who can institute a claim and which court has jurisdiction?
This article deals with the questions of who can institute litigation on behalf of a trust, as well as with the question of how jurisdiction is determined with regards to trusts. Who can institute a claim? A trust is not a legal person and cannot litigate in its own name. The trustees play a vital […]
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 […]