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Family Trusts as Effective Asset Protection Instruments

09.Feb.2016 | Trusts

Only once you understand the full potential of trusts do you appreciate why, despite some disadvantages, trusts make excellent estate planning and asset protection instruments. Every trust is unique, even though it falls within a specific category, and the primary function is to protect the property or assets transferred to the trust. It can be established to protect the family’s assets or to ensure that your children will have adequate income if you are no longer around to take care of them. The trust must be set up to meet your specific requirements and this is where the expertise... read more

Management of Deceased Estates

09.Feb.2016 | Estate Planning

Why an Executor Must Be Experienced in the Management of Deceased Estates The management of deceased estates is a complex task and before you appoint an executor based on friendship or family ties, you should first consider what the role entails. It is essential to appoint someone that is intellectually capable, responsible and committed to ensure correct application of the law and distribution of the assets. What you are basically asking from the executor is to take over your role in managing your deceased estate. The person must have the time and if you choose the wrong person it... read more

When is it Time Update My Will?

09.Feb.2016 | Wills

If your question is “When is it time to update my will?” then it is already time to have a professional specialising in wills, trusts and estate planning review your will. As a general rule, it is wise to update your will every three to five years, though it is recommended that you review it once a year just to make sure nothing of importance changed during the past twelve months for which an update will be necessary. With the will being the most important record of instructions regarding your assets and wishes, you will want to update it... read more

When to Create a Trust Fund

09.Feb.2016 | Trusts

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

What makes a trust unique and thus so effective?

03.Feb.2016 | Trusts

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

A negative effect the accrual system may have

03.Feb.2016 | Estate Planning

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