At Walt Capital, we are specialists in our fields and experts at managing portfolios. In South Africa, in addition to the traditional living trusts and will trusts there is a "bewind trust" (inherited from the Roman-Dutch bewind administered by a bewindhebber) in which the beneficiaries own the trust assets while the trustee administers the trust, although this is regarded by modern Dutch law as not actually a trust. The trust must be established as an irrevocable trust, which means: The Founder of the Trust must not have the right to cancel the initial donation made to the trust nor be able to revoke his instruction to create the trust. In an asset protection trust, the Settlor and Beneficiary can be the same person.The Trustee is typically a licensed, bonded, insured company that has a written duty to protect the assets from creditors. They are especially suited to the protection … The benefits can include reducing the care fees payable to … Family trusts can be either testamentary trusts, or inter vivos trusts. At Walt Capital, there are several different ways in which clients can diversify their portfolios, whether by setting up an Offshore Share Portfolio in their own name, or by establishing an Offshore Trust and then allowing the Share Portfolio to grow within that very structure. Due to the excellent benefits offered through Offshore Trusts, we have partnered with a leading Fiduciary partner in the Cook Islands, as this is arguably one of the best locations for international trusts worldwide. © 2020 Copyright Walt Capital Management| Design & Marketing by. • To protect your assets from creditors or relationship claims • To provide continuity after death • To protect your assets if a beneficiary is a minor or is disabled However, an inter vivos trust is not suitable for every individual or family. An asset protection trust is a separate legal vehicle, which can own property, bank accounts, and other asset classes. Such trusts are therefore frequently proscribed or limited in their effects by governments and the courts. The trusts that have shown to provide the most protection … Their main objective is the protection and maintenance of trust property for the benefit of the family members of the founder. The courts of South Africa adjudicate on trust matters. By clicking “Accept”, you consent to the use of ALL the cookies. Setting up an offshore trust is NOT only for the wealthy, we feel that with as little as USD20 000 one should strongly consider setting up an offshore trust, you can always add more assets as time goes by. It is the most common trust used in South Africa. In South African law, a minor cannot be the registered as owners of property, therefore the asset is liquidated … The Cook Island Trust has been selected, as the Cook Islands form part of the New Zealand Commonwealth, and as such, they have a very stable government with a legal system based on traditional English law (even using retired New Zealand Supreme Court judges in their courts). These trusts are typically set up in a tax haven jurisdiction. In addition to those mentioned above, clients can grow their portfolio in a tax-friendly manner and protect their assets from frivolous lawsuits. Testamentary trusts are the most common trusts in use in South Africa. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is therefore timely to consider the pros and cons of using trusts … Such trusts are set up in an attempt to avoid or mitigate the effects of taxation, divorce and bankruptcy on the beneficiary. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. TYPES OF TRUSTS : In South Africa, there are three types of trusts : Living trusts (in South Africa called inter vivos trusts) Testamentary trusts; Bewind trusts; Testamentary trusts are created at the winding up of a deceased estate following a specific stipulation in the deceased person’s Will that a trust must be set up. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information. It can be said, though, that the South African Law of Trusts is a mixture of Roman-Dutch Law, English Law and indigenous South … Asset Protection or Corporate Structuring is a legal process by which assets are bought in or moved to appropriate legal entities in which these assets enjoy protection … The recently announced increases in the probate fees have, not unexpectedly, resulted in the increase in the number of articles proclaiming the benefits of the so-called probate trusts. Once again it must be stated that should the trust sign surety for any of the business’ or an individual’s liabilities this protection … An asset-protection trust is any form of trust which provides for funds to be held on a discretionary basis. Asset Protection Trust In 2021 Using a trust can give you peace of mind that your chosen beneficiaries will inherit from your estate. Protection of minors. The trustees should be independent of the beneficiaries. There are significant advantages to either investing through, or simply holding assets in an asset protection trust. Various types of trusts may be created in South Africa, the most commonly used are known as: Inter Vivos / Living Trusts An inter vivos trust comes into being during the lifetime of the … You also have the option to opt-out of these cookies. Your browser's JavaScript is disabled / does not support JavaScript. This type of trust … But opting out of some of these cookies may have an effect on your browsing experience. Necessary cookies are absolutely essential for the website to function properly. The trust instrument is the last will and testament in which the maker of the will sets out the terms and conditions of the trust. Trusts have long been associated with elaborate tax avoidance schemes, and there exists a perception that trusts are misused by wealthy South Africans (BDO 2013). “There are costs associated with a trust, but most people consider this worthwhile compared to the protection it affords your assets. Trusts are an ideal vehicle with which to preserve, protect, and grow assets against all the different risks that we experience, ranging from political and currency risk to protection from … We can further diversify our clients’ portfolios by utilising local investment avenues, such as Unit Trusts, Local Direct Share Portfolios, or Retirement Annuities, to name a few. Whether for personal trusts, Limited Liability Companies (LLCs), or Private Asset Foundations, at Walt Capital we can facilitate the setup, as well as the management of your trust and all associated elements. Complete the form below and we will get back to you. Don’t delay, talk to us now! We also use third-party cookies that help us analyze and understand how you use this website. Clients also have the choice of managing their own portfolios, as one of the several benefits of this offering is the ease of which clients can manage their own portfolios offshore. It is a fantastic way to diversify risk and build that critical golden nest egg in a safe place! It is especially suited for the protection of the interests of minors and other dependants who are not able to look after their own affairs. They are formed to ensure the continued operation of a business that has a profit incentive. Any form of trust that provides for trust property to be held on a discretionary basis falls within this category, for example a family trust that is designed to secure the interests and protect the property of a group of family members. English is the native language in the Cook Islands, making it a far more suitable option for clients, especially when it comes to the legal documentation, unlike some of the other countries offering international trusts. There are tax advantages and disadvantages with foreign trusts, and in South Africa there are both general and specific anti-avoidance provisions which can negatively impact the use of foreign trusts. Our structures will ensure that your assets are … ASSET PROTECTION DEFINITION. For tax purposes trusts are being used … In South Africa, this includes any non-South African or non-resident trust that has its place of effective management outside of the Republic. The iProtect Experience iProtect ensures that our structures seamlessly integrate with your existing portfolios and assets to provide maximum optimization. Types of Trust. These cookies will be stored in your browser only with your consent. The setting up and administering of a Trust requires intrinsic knowledge of South Africa’s tax and succession laws. A trust will ensure immediate access to capital and income after death. If you’re considering an asset protection trust… Asset Protection trusts include a large spectrum of legal structures that are set up in order to mitigate the effects of divorce, attacks from creditors, and bankruptcy on the part of the beneficiary. In fact we would argue it IS the number one jurisdiction in the world! Establishing this type of trust may be necessary if you’re concerned about your assets being attached as part of a lawsuit settlement or court judgment. OFFSHORE TRUSTS . Trusts are not favoured by the authorities, and the South … 3.1 Testamentary Trust. These trusts are inter vivos trusts. Currently a trust is defined widely in the South African income tax legislation as meaning any trust fund consisting of cash or other assets that are administered and controlled by a person acting in a … Around the same time we have had more details of the fallout from the Universal Asset Preservation Trust scandal. Trusts are an ideal vehicle with which to preserve, protect, and grow assets against all the different risks that we experience, ranging from political and currency risk to protection from creditors. You should see a trust as a vault, anything that goes in should not be allowed to go out again unless you complete all the paperwork, and if an asset is in the vault the asset is protected. By appointing an agency, like your bank, to manage your Trust you can rest assured … Walt Capital Management (Pty) Ltd is an authorised financial services provider, licensed with the FSCA, our FSP number is 50218. An asset protection trust is a self-settled trust in which the grantor can be designated as a permissible beneficiary and allowed access to the funds in the trust account. Foreign trusts. Medicaid Asset Protection Trust. While one of the primary purposes of an asset protection trust is to protect the settlor's assets from creditors' claims, such a trust can also be used to help … Their main objective is the protection and maintenance of trust property for the benefit of the family members of the founder. If you care about your wealth and want to build a long lasting legacy, want a trusted method whereby you can protect your assets, as well as benefit from LOW TAX or possibly even TAX FREE, USD-BASED growth, get in touch with us today to discuss your investment! It is mandatory to procure user consent prior to running these cookies on your website. Testamentary trusts are usually created to hold assets on behalf of minor children, since minor children cannot in terms of South African … These trusts are typically set up in a tax haven jurisdiction. Trust Focus is the leading trust services provider in South Africa. There are two main types of trusts: trust between living persons (inter vivos trusts) – created by and … The assets in a Medicaid asset protection trust not only allow one to meet Medicaid’s asset limit without “spending down” assets, but the assets are also protected for the beneficiaries … Copyright © 2021 Trusteeze / All Rights Reserved. Ultimately, all South African property owners are entitled to place their assets in a trust, ensuring they are entirely protected from the grasp of creditors and benefiting the property owner’s family in the event of … There must be no vesting of trust assets … The effect is that the South African Revenue Service (Sars) assumes that trust assets grow by at least the official interest rate annually. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. An asset protection trust is a type of trust that has a specific purpose – protecting your assets from creditors. There was extensive English Law influence in South Africa in the early 19 th century and the terms “trust” and “trustee” began to be accepted in South Africa.
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