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It’s a well know fact that setting up a Trust for your beneficiaries has advantages over passing on your estate via a Will. These advantages have to do with tax benefits associated with Trusts, as well as a number of other factors.

However, Trusts do not do away with the need for Wills. There are certain things that require the drawing up of Wills. These include instances where not all assets or income can be held in the Trust, or will be, at the time of death. Also, Wills are required for the Benefactor to name a specific Guardian to take care of the affairs of minor children – including receiving monies from trustees if a trust is part of a will.

Trust is set up as part of a Will:

  • Assets that are intended to be shared among family members can be placed in a Trust. These assets will be managed by the Trustees. Income derived from investments and properties held in a trust can be apportioned to various family members. How this is done will be defined in the benefactor’s Will.
  • Assets held in Trust can be managed for the benefit of the whole family, even before the death of the benefactor. This protects the assets and all the family members in instances where the benefactor is incapacitated prior to death.
  • Assets held in Trust are not subject to Estate Management processes after death, as are assets passed on in a Will. This means that family has uninterrupted access to properties, investments and income. Assets not held in Trust, such as the benefactors bank balance – are frozen after death and can take two years or more to distribute.
  • Although income from assets held in a Trust is subject to taxation, the assets themselves are not subject to Capital Gains tax. Placed in a Family trust, they have not legally been passed from one owner to the next- not until they are legally taken out of the Trust.
  • Assets placed in a Trust can be protected from creditors – and from financial mismanagement by beneficiaries. It also prevents beneficiaries selling off their shares of family assets.

Setting up a trust to work in a will is the ideal vehicle for protecting shared family wealth. TAT can assist with setting up your trust to work in your will as we offer unique solutions that protect your inheritance and family wealth. Contact us now and lets come up with a solution to protect you and your families financial future.

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Erasmus Pretorius

With over 23 years of unwavering expertise, I am a seasoned Chartered Accountant committed to financial excellence. My journey in the realm of finance has been marked by astute strategic insights, meticulous attention to detail, and an unyielding dedication to precision. Over the years, I’ve navigated the complexities of financial landscapes, providing invaluable counsel to diverse clients. My proficiency extends across auditing, taxation, and financial management, coupled with a profound understanding of regulatory frameworks. As a registered professional, I have consistently upheld the highest standards of integrity and ethics, earning a reputation as a trusted advisor in the dynamic world of finance.