JOHANNESBURG: +27 861 711 711    /    CAPE TOWN: +27 21 914 0835

Trusts

We strive to protect and grow the assets and wealth of our clients in the unfortunate event of death. We will continue to protect and grow the inheritance of our clients' loved ones thereby ensuring the wealth and legacy of the next generation.

Trust services


What is a trust?

A trust is a legal entity with its own identity. It may acquire, hold and sell property, shares and other assets.

A trust is an arrangement under which assets are set aside by an individual and administered by a trustee for the benefit of another person.

Why should I create a trust?

The purpose of a trust is to protect your assets.

A typical reason for creating a testamentary trust is for the protection of the interest of minors or dependents who are unable to take care of themselves.

Testamentary trust


What are the benefits of a trust?

Testamentary trust

Special trusts qualify for tax advantages (income tax and capital gains tax) as these trusts are mostly taxed at the rates applicable to individuals (exceptions do occur).

Glossary


EFBOE in general no longer cater for inter vivos trusts and will only consider the creation and administration of inter vivos trusts on a case by case basis.

For more information on specialized fiduciary or trust services contact info@efboe.co.za or one of our marketers listed in our Contact Page.

FAQs

A trust is a legal entity that may own assets. A testamentary trust is a trust created in terms of a Will of a deceased person, usually for the benefit of minor heirs. The trust will own the assets until a/the beneficiary/ies attain a certain age.

An inter vivos trust, is also known as a living trust. This type of trust is usually registered to protect one’s assets from creditors. If an asset duly vests in an inter vivos trust, this asset will not form part of the estate of any of the trustee/s or any of the beneficiaries and can therefore be protected from creditors (there are some exceptions).
A trustee is the fiduciary put in charge of overseeing property owned by a trust. A trustee can either be an individual or an institution such as a bank or a trust company.
If you do not create a trust in your Will, the assets in your estate will be sold and the cash will be paid over to the Guardian’s Fund. The heirs will receive the cash when they become of age. As the Guardian’s Fund only accepts cash, ALL the assets will be sold.
No, most of the payments will be made directly to the institutions, i.e. school fees will be paid directly to the school and university fees will be paid directly to the university, etc. The only payments directly to the guardian will be monthly maintenance and, in some cases, a clothing allowance.
Yes, when a guardian applies for monthly maintenance, the guardian will be expected to submit supporting documentation so the trustees can confirm the guardian’s income and expenditure. They will then, in consultation with the guardian, decide on an amount payable for the monthly maintenance of the beneficiary. Once the trustees have decided on this amount, the guardian will not be expected to submit monthly receipts for this allowance. All other requests must be confirmed with a quotation. If the trustees accept the quotation, the guardian can pay the costs and provide the trustees with the receipt in order for a refund to be affected or the costs can be paid directly to the institution.

All expenditure (except monthly maintenance) in the financial statement must be supported by a receipt or a quotation/invoice.
The trustees, subject to the provisions of the conditions of the Will. Once the maintenance requirements for the beneficiary/ies have been determined, the trustees, in consultation with the guardians of the beneficiaries, will decide on the how much, where and with which institution the capital of the trust will be invested. As the responsibility of the performance of the investments ultimately rests with the trustees, they will always have the final say in choosing of the investment platform.
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JOHANNESBURG
Tel: +27 861 711 711
E-mail: dawiejhb@efboe.co.za

CAPE TOWN
Tel: +27 21 914 0835
E-mail: mariecpt@efboe.co.za