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Reasons to consider registering a family trust in South-Africa

Trusts can be established for a number of reasons. Among them:

 

 

  • To manage and control spending and investments to protect beneficiaries from poor judgment and waste;

  • To avoid court-supervised probate of trust assets and be private;

  • To protect trust assets from the beneficiaries’ creditors;

  • To protect premarital assets from the division between divorcing spouses;

  • To set aside funds to support the settlor when incapacitated;

  • To manage unique assets that are not easily divisible, e.g. vacation homes, pets, recreational vehicles, mineral interests, timber and commercial real estate;

  • To manage closely-held business assets for planned business succession;

  • To hold life insurance policies, pay premiums and collect the tax-free proceeds to care for beneficiaries, the fund closely held stock redemptions or purchases, and provide liquidity to the estate;

  • To provide a vehicle for charitable gifting that can reduce income taxes and benefit the settlor, his or her spouse and their children;

  • To provide tools for Medicaid and means-tested benefit eligibility for the settlor, a surviving spouse and disabled children;

  • To provide structured income to a surviving spouse that protects trust assets for descendants, if the spouse remarries; and

  • To reduce income taxes or shelter assets from the estate and transfer costs and taxes.

 

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Louwrens Koen Attorneys

Louwrens Koen Attorneys, Conveyancers and Notaries have a modern outlook on life and have modern solutions for today's problems and needs without compromising on traditional values. Louwrens Koen was admitted as an Attorney in 1995. He is also an admitted Conveyancer, Notary Public and University Guest Lecturer.