July 28, 2020

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 question that many minor beneficiaries and their guardians have had to come face to face with over the years in their dealings with the Guardian’s Fund. The Guardians Fund is a Government entity, regulated by the Master of the High Court, that is responsible for […]
September 8, 2017

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 for young and old becomes increasingly important. Young people should consider preparing certain estate planning documents. When to start with estate planning? At the age of 18 a young man or woman officially becomes an adult in the eyes of the world. This means that […]
April 11, 2017

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 rente nie gehef word nie, word ‘n donasie geag as deur die krediteur gemaak wat jaarliks gelykstaande is aan die verskil tussen die werklike rente gehef (indien enigsins), en rente wat gehef sou word indien ‘n koers van prima minus 2.5% van toepassing was. Baie […]
October 10, 2016

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 bekende “leipyp”-beginsel (in terme waarvan inkomste ontvang in ‘n trust mag “vloei deur” die trust en eerder in die hande van die trustbegunstigdes belas word). Vele skrywers in die media, sowel as praktisyns, het wyd kommentaar gelewer en die allerweë verwagte beëindiging van hierdie goedverskanste […]
July 5, 2016

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 an independent trustee to be appointed in addition to the trustees who are beneficiaries of the trust, and therefore will not issue a Letter of Appointment without at least one independent trustee being appointed. An independent trustee will be a person who is not related […]
July 5, 2016

DIE BELANGRIKHEID VAN ‘n ONAFHANKLIKE TRUSTEE

‘n Bekende hofsaak, Land Bank of South Africa vs. JL Parker and Two Others (die Parkersaak) het die vereistes vir aanstelling van onafhanklike trustees onherroeplik verander en het hernude fokus geplaas op die pligte en verantwoordelikhede van alle trustees. As gevolg van die Parkersaak vereis die meeste Meesters van die Hooggeregshof nou dat ‘n onafhanklike trustee aangestel moet word benewens die trustees wat begunstigdes van die trust is, en sal hulle dus nie ‘n Aanstellingsbrief uitreik sonder die aanstelling van minstens een onafhanklike trustee nie. ‘n Onafhanklike trustee sal ‘n persoon wees wat nie verwant is aan die stigter, die […]
September 7, 2015

Advantages and disadvantages of trusts

Trusts have various advantages, but unfortunately there are also disadvantages. Although this is not a complete synopsis of all the pros and cons, our experience may assist you in making decisions about Trusts.   Advantages: Growth taking place in the Trust assets settles in the Trust and not in your personal estate. By selling the assets to the Trust, the amount owed to you by the Trust will remain outstanding on the loan account and shall be regarded as an asset to your estate. This amount may be decreased for Estate duty purposes by utilising the annual Donations Tax exemption […]
December 9, 2014

Sekere riglyne vir boedelbeplanning

Die hoofdoel met boedelbeplanning is om toe te sien dat soveel as moontlik van jou geakkumuleerde rykdom vir jou eie voordeel aangewend word en vir die maksimum voordeel van jou afhanklikes by jou dood. “Boedelbeplanning” word gedefinieer as die proses waarin ‘n program geskep en bestuur word om: Jou bates tydens jou leeftyd in stand te hou, te vermeerder en te beskerm; Die mees effektiewe en voordelige verdeling daarvan aan opvolgende generasies te verseker. Daar bestaan ‘n algemene wanindruk dat boedelbeplanning net gaan oor die maak van ‘n testament of om jou sake so te reël dat boedelbelasting bespaar word. […]
November 7, 2014

Belasting van trusts

In die begrotingstoespraak gedurende Februarie 2013 het die Minister van Finansies gemeld dat die belasting van trusts onder oorsig geneem sal word om enige misbruik daarvan te beheer. In die begrotingsoorsig van 2013 deur Nasionale Tesourie is die volgende gemeld: To curtail tax avoidance associated with trusts, government is proposing several legislative measures during 2013/14. Certain aspects of local and offshore trusts have long been a problem for global tax enforcement due to their flexibility and flow-through nature. Also of concern is the use of trusts to avoid estate duty, which will be reviewed. The proposal will not apply to […]