Benefits of a Trust

Our Primary goal is to get all our clients to OWN NOTHING, because if they own nothing there is nothing to lose.

An “Inter Vivos” Trust is established during your lifetime. The process to register a trust is fairly easy, but it is of utmost importance to consult with an experienced trust specialist to draft the trust deed.  This is the contract that dictates the relationship between you, the founder, the trustees and beneficiaries.


One of the primary advantages of a living trust is that it offers you tax efficient management and control of your assets after you die. The growth in your estate is “pegged” and the value will increase in the trust. A trust creates is a entity, that owns the assets outside of your personal estate and therefore do not form part of the calculation of estate duty.
Taxes and costs amounting up to 35% on death can be saved, through proper structuring.
An individual will be liable for the following costs and taxes upon death:

     1.    Estate Duty (20% of net Estate) as the Trust will continue to exist after your passing.
      2.    Capital Gains Tax (13,65% CGT) on an individuals death..

      3.    Executor's fees (at 3.99% of your Gross Estate) is a particularly unnecessary and avoidable cost.
      4.    Costs associated with the transfer of immovable property can be avoided.

Bank accounts and cash reserves of the trust will not be frozen during the winding up of the individuals estate, which can take up to 2 (two) years. A trust will ensure access to capital and income after the death of an individual.


Through proper structuring, protection of assets against creditors can be achieved.

The major risk categories are:

  • Financial risk
  • Business risk
  • Personal risk
  • Family/Divorce risk


  • A Trust is an entity that will “outwit, outplay & outlast’” you, and will not terminate (unless decided by the Trustees). Therefore it can own properties and assets for generations, and pass this portfolio of assets to the next of kin tax free.
  • In conclusion, to protect your accumulated wealth assets, contact us to assist in planning your lasting legacy.


There are many tax advantages of property structured entities. Indispensible.

Please contact us for individual tax structuring advise based on your personal needs.

Further benefits of estate structuring will be:

Protection of Minors

In SA Law a minor cannot be the registered owner of property, therefore the asset is liquidated and the proceeds invested in the Guardian Fund at 3% interest rate. Assets are also protected against spendthrift children, who will not be able to reduce the assets to zero.

Multi-ownership of assets

Some assets can not be divided, for example businesses, farms or other property. By placing these assets in a trust, the heirs can be the beneficiaries of the income generated by these assets.


Upon the death of an individual a will becomes a public document on your death. A Trust does not form part of your estate and thus the assets of the trust remain confidential.

Benefits of a Property Shareholding Trust and a Company Structure

Individual Trust Company
Income Tax 41% 41% 28% 15% Dividends withholding tax (effective tax rate if dividends are paid is 38,8%)
Capital Gains 41% x 666,65 = 13,65% 41% x 666,65 = 27,31% 28% x 66,6% = 18,65%
Tax Planning
  • Flexibility in tax planning i.t.o the conduit principle
  • trustees have a discretion
  • Trust return requires detailed info/complex
  • Lower income tax rate than the trust tax rate
  • All shareholders receive same dividend
  • Audit not required
Death of an individual At deaeth the individual is liable for: The Trust continues and is therefore not liable for the same tax/costs as at a death of an individual The Company continues and is therefore not liable for the same tax/costs as at a death of an individual
Estate duty 20% N/A N/A
CGT 13,65% N/A N/A
Executir fees 4% N/A N/A
Accounts are put on hold when an individual dies N/A N/A
Protection No protection against creditors Protection if structured properly Protection if structured properly
Funding Process is simplified Trust registration required Shelf companies are available but shareholding needs to be transferred to the trust
Can get up to 100% finance New Trust up to 80% New Company up to 80% A delay in trust registration may result in a potential transfer duty or CGT liability
TAX N/A Flexibility in tax planning i.t.o the conduit principle
Trustees have a discretion
Lowest Income Tax
All shareholders receive same dividend
Administration One Tax Return Trust return is complex No Audit required

The Incredible Power of Trusts

In this FREE high content training video you will learn.

  • The 5 everyday risks business owners face
  • The 5 absolute myths and misconceptions about trusts
  • The 10 Indispensable reasons why you must set up a Trust structure before you do anything else
  • How you can leave a lasting legacy for your family & loved ones