Testamentary trusts still have their place
How you can protect your assets from predators—including SARS Trusts have received a lot of bad press over the past few years, what with SARS taking a dim view of the use of trusts as a means of avoiding tax. A 2008 case involving a property trust, where the beneficiaries were changed in the hope […]
Distributing retirement fund death benefits
Making benefit allocations equitably and fairly AS PER Section 37C of the Pension Funds Act, once trustees have identified dependants of a deceased member, the next step is to allocate the death benefit in a proportion they deem fit. This article highlights some of the key factors in making this determination. Section 37C grants trustees […]
Who qualifies for a special trust and how is it taxed?
Unlike “conventional trusts” that are taxed at a flat tax rate, a special trust is taxed on the same sliding scale applicable to natural persons. The Income Tax Act provides for two types of special trusts: a so-called type-A and type-B trust. In essence, a type-A trust is created for a person (or persons) having […]
Deceased’s document not considered a valid will, despite clear wishes
The Wills Act sets out the requirements for a valid Last Will and Testament. For a will to be valid, it must be signed and witnessed. What happens if the wishes of the deceased are clear, but the document does not meet the requirements of a valid will? This was the heart of the matter […]
Can losses be distributed out of a trust?
On 18 March 2021, the Supreme Court of Appeal delivered judgment in the case of Massmart Holdings Limited v The Commissioner for the South African Revenue Service. The case dealt with losses which were incurred within the broader Massmart group in respect of the investing of equity instruments as part of an employee share incentive scheme. The mechanism of the scheme was that shares allocated to the designated employees would be […]
Safeguard your children’s inheritance
Ensuring their children are cared for when they pass away is one of the primary reasons people draw up a will. But what happens when the best interests of the children that are left behind are not at the forefront when an estate is administered and maintenance needs to be paid? This is, unfortunately, a […]
ESTATE PLANNING FOR YOUNG ADULTS
It is very important for you to plan your estate, which could include a living will, a last will and a living trust. This can help families prepare for difficult times when you are no longer around to assist or advise them. Our lives get busier and more complicated by the day, so estate planning […]
RENTEVRYE LENINGS EN TRUSTS
Die onlangse invoering van Afdeling 7C tot die Wet op Inkomstebelasting1 het die belasting van trusts, en spesifiek die befondsing daarvan, opnuut onder die soeklig geplaas. In kort, Afdeling 7C beoog die heffing van skenkingsbelasting op lenings verskuldig deur trusts aan verbonde partye (tipies die begunstigdes of maatskappye wat dit beheer). Tot die mate waartoe […]
VOORGESTELDE WYSIGING AAN DIE BELASTING OP TRUSTS
Die Nasionale Tesourie het sy langverwagte voorgestelde jaarlikse wysigings aan belastingwetgewing in Julie gepubliseer. Hierdie jaar is daar verwag dat die voorgestelde wysigings duidelikheid sou bring rakende die Tesourie se voorstelle oor hoe om die merkbare misbruik van die trustvorm aan te spreek met die oog op die toekoms, veral met verwysing na die nou […]
THE IMPORTANCE OF THE INDEPENDENT TRUSTEE
A well-known court case, Land Bank of South Africa vs. JL Parker and Two Others (the Parker case) irrevocably changed the requirements for independent trustees to be appointed and placed renewed focus on the duties and responsibilities of all trustees. As a result of the Parker case, most Masters of the High Court now require […]
