Significant changes to trust laws have made their administration more onerous and less tax efficient. However, trusts still have a place if used for the correct purposes, such as asset protection and wealth generation.
While a trust can be a great way to house inter-generational wealth, over the last 10 years there have been significant changes to the laws that affect the way trusts are administered and taxed. This has made the administration of the trusts more onerous, expensive and less tax efficient. However, there is still a place for the trusts, as long as it is used for the correct purposes.
According to Tanya Lochner, fiduciary expert at Gradidge Mahura Investments, there are three main reasons for using a trust: Protection: A trust can be used to protect assets. This could include the case of someone with special needs such as dementia, or a drug addict. It can also be used to protect assets from the creditors, including divorce claims. Wealth generation: A trust can house assets for future generations without transferring ownership and the consequential tax implications
Trusts Inter-Generational Wealth Administration Tax Asset Protection Wealth Generation
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The power of data processing is changing the global investment landscapeAfrica's better future
Read more »
| Rethinking traditional retirement in a rapidly changing landscapeSonja Steyn | Rethinking traditional retirement in a rapidly changing landscape
Read more »
The power of data processing is changing the global investment landscapeCompared to 50 years ago, there is a greater need to process large volumes of data and convert them into consistently good insights at a reasonable speed to beat the markets.
Read more »
Unit Trusts on MoneywebThe latest Unit Trusts on Moneyweb
Read more »
The community trusts us with their children - Church Leaders' Organisation says in case against apostleThe community trusts us with their children - Church Leaders' Organisation says in case against apostle
Read more »
Understanding Living Trusts: A Guide to Estate PlanningGareth Collier of Crue Invest details the attraction of these trusts and how to determine whether having one would be right for you.
Read more »