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ANTENUPTIAL CONTRACTS / LAST WILLS / LIVING WILLS            TRUSTS / DECEASED ESTATES / NOTARY SERVICES                              LEGAL AGREEMENTS                

A trust is an arrangement whereby assets are entrusted to Trustees to be managed by them for the benefit of certain beneficiaries.

Reasons to create a Trust:

1.   Effective management of assets where beneficiaries are minors, insolvents, incapacitated or too irresponsible or inexperienced in money matters.

2.   Trusts exist in perpetuity and provide continuity through generations.

3.   Protection of your assets from creditors, insolvency or divorce.

4.   Benefits at death:

a.    Trust assets not part of deceased estate. Therefore no Estate duty, no Capital gains Tax (no capital assets are deemed to be sold), no Executors fees, no transfer duty, no conveyance fees.

b.    Continuity for benefit of dependents, because Trust assets are not frozen, but remain freely available.

c.    Protection and provision for minor beneficiaries – prevent inheritance to be held by Guardian Fund until majority age.

d.    Efficient succession - The protection of your loved ones' financial interests and dependents’ maintenance needs.

5.   Tax benefits:

a.    Income distributions and splitting–income is distributed and split between more than one beneficiary (conduit principle) and taxed in the hands of the beneficiaries at their lower normal income tax rates.

b.    Donations tax - a trust is exempt from donations tax made by the Trust to its beneficiaries.

c.    Capital Gains Tax – capital gains are distributed to one or more beneficiaries and taxed in their hands at the lesser tax rate.  

In summary, a Trust is a flexible and effective vehicle for the efficient management of assets that have been set aside for the benefit of beneficiaries.