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Trusts
Trusts may be classified according to several criteria, including: whether the founder was, at the date of creation of the trust, still alive or deceased. Trusts created at the death of the founder, in terms of these last will and testament, are referred to as a “Testamentary Trust”. Testamentary trusts are ideal for protection of assets and rights of minors, in which instance the lifespan of the trust would in all probability be limited by linking it to a certain event or date. Trusts created during the lifetime of the founder are referred to as “Trusts inter vivos”. This category of trust most likely embraces the objectives of estate planning that envisage the limitation of personal liability, estate duty and capital gains tax, which are real threats at the time of any economically active person’s death. “Business” or “Trading” trusts likely fall into this category. “Business” or “Trading” trusts grant trustees extensive powers to carry on trade or business. “Family” trusts, however, provide only limited powers to trustees or rights to beneficiaries. The primary object of the family trust is to preserve assets for future generations. Be aware of the dangers inherent to “cheap”, “quick”, “online” or “instant” trusts. You should, if you are to utilise the full benefits of this vast and historically well-developed field of the law, consult an expert in trust law, to ensure that the rights, property and beneficiaries you intend to protect, will indeed be sufficiently protected. |
