Trust Funds Pretoria

What Are the Main Benefits of Establishing a Trust Fund?

Today, most South Africans, everywhere from Pretoria to Pofadder, are aware that estate duty, capital gains tax and the sundry costs that may arise from handling a deceased estate can severely erode the ultimate value of an inheritance. It can thus minimise the benefits that accrue to the intended beneficiaries. However, this is not the only reason why one should consider taking steps to protect it. In this respect, trust funds can prove to be the perfect instrument with which to protect those assets intended to help your loved ones, as well as making the entire process of planning your estate a safer and more efficient option than simply relying on a basic will.

In principle, setting up a fund offers the individual a means to ensure that his or her beneficiaries will enjoy an ongoing income that is designed to provide them with long-term security. It is therefore preferable to willing them a capital lump sum which, unless managed with care, could prove to be of a relatively short-term benefit to the inheritors. Planned with care and depending upon the total value of the bequest, investing in a trust fund offer one the means to ensure a legacy that has the potential to endure for several generations.

Death, unfortunately, follows no timetable and it is therefore essential to make early provision for the welfare of a spouse and particularly for one’s children. In the latter case, they are unlikely to have the experience to manage their inheritance effectively and it is in precisely this type of situation that the benefits to your family members, of a well-designed trust fund, can prove invaluable. With a little professional guidance, it is possible to ensure that each of your children will receive an adequate income should you no longer be able to attend to their needs in person.

In addition to allowances that will be disbursed at pre-agreed intervals, it is also possible for the trustees to release larger sums. For instance, such sums could provide the means to finance the cost of higher education or be disbursed upon coming of age. In each case, these instruments are also designed to provide the beneficiary with an effective and welcome tax benefit as the value of any included assets increases within the trust and not in the estate of the beneficiary.

To obtain dependable assistance with the setting up of trust funds, it is strongly recommended that you seek the services of a firm focussing on trust services and tax specialists with a proven record in this specialised field. Secure Legacy is one such firm with its head office in Lynwood, Pretoria and a further branch office in Johannesburg. Our highly-qualified team of professionals has a combined experience of more than 90 years and serves the needs of families, business owners and other professionals, providing dedicated solutions to protect their assets and the future security of their beneficiaries.

Our firm’s emphasis is on forging sound relationships based on trust, thereby ensuring it better meets the unique needs of every client.