We often get clients asking us if they should register their property in a Trust or in their own names.

The standard answer is that if you ask 10 different Attorneys, you will most likely get 10 different answers.

So here are a few advantages of registering your property in a trust so that you can make a more informed decision.

Without further ado, here they are.

• The value of your estate can be pegged for estate duty purposes, by means of a trust.
• Growth on trust assets takes place in the trust, not in your personal estate.
• A trust can be used where an asset such as a farm, which is not divisible, needs to be held for the advantage of more than one beneficiary.
• It can be used to preserve assets after death to pass on to next generations, for any purpose, such as education or to meet contractual arrangements.
• Assets of beneficiaries incapable of managing their own financial affairs, being minors, inexperienced or handicapped, can be protected.
• During a divorce, a trust can be used to provide for continued maintenance of the children.
• If assets are already in a trust, it allows for a smooth and quick transition thereof, to next generations.
• If in a deceased estate, it may take months to transfer or to get access to assets or funds.
• In case of an estate, relevant documents are open to the public while in trust it is a private matter.
• Protect surviving spouses who are not in a position to manage their own financial affairs.
• Protect surviving spouses and/or beneficiary (ies) against bad influences/investments.
• Can be used to benefit special interests such as charities or educational bursaries, even after death, for an indefinite amount of time.
• A professional trustee can be expected to be impartial towards beneficiaries, especially after your death.
• Having assets in a trust prevents possible future intestate transfer to generations, with resulting inconveniences such as forced sales of assets.
• Cost savings on executor’s fees and transfer costs.
• A trust might present saving in income and capital gains tax, depending on circumstances.
• Trusts offer flexibility.
• Some involvement might still be possible by a living donor.

If you’d like to learn more about creating a family trust, our expers are here to help you with making an informed decision. Get in contact today and we’d be more than happy to assist you with a consultation. See you soon.