Because few of us know what makes a trust unique and thus so effective for estate planning and asset protection purposes, few of us use this great tool. This article is dedicated to explain this uniqueness. For us to be able to answer our question, we will have to look at how a trust is created. A trust is created when a person (called the founder or donor) places assets under the control of another person (called the trustee) to be administered separately from the trustee’s own estate for the benefit of beneficiaries. From the above definition, you will... read more
Without proper estate planning, the consequences of the accrual system may leave your beneficiaries with a lifetime of hardship. This article explains a negative consequence the accrual system may have at death. The accrual system explained The purpose of the accrual system is to create fairness between spouses, especially in the old traditional homes where the wife is running the household, allowing her husband to build up wealth and to support the family as a whole. This is accomplished by, on the dissolution of the marriage (in this case by death ), dividing the value of the assets obtained... read more
The death of a loved one is always very emotional and place us in unfamiliar territory at a time when we cannot think clearly. This guideline is aimed to help you cope with practical tasks during such times. You will be required to make quick decisions, from funeral arrangements to how to accommodate and feed out-of-town family and friends. To guide you through this unreal time, we have put together this general task list. To do immediately • Call emergency services, if your loved one passed away at home in order to report the death. • Call the funeral... read more
Did you know that over 85% of South Africans have not done any estate planning, such as setting up a will for their children? Shocking as it may be, people don’t quite like thinking of death and their responsibilities to their families after they have passed away. Many believe that they will only need to set up a will when they are rich or when they are older. Unfortunately, death often comes as a surprise and even if you did set up a will five or so years ago, your financial circumstances and family and/or friend relations change. If... read more
A trust is set up by the founder who then surrenders assets to the trust, which is administered by a trustee or trustees to the benefit of the appointed beneficiaries. In setting up a trust fund, you ensure that the powers of the founder are separated from that of the beneficiaries and the trustee/s and to protect the assets within the trust for a variety of reasons as explained below. A trust fund for your children can be an effective tool for protecting income generating assets for your children and to avoid expensive estate duty tax. However, before you... read more
