One of the main advantages of Trusts is their flexibility and the ability to tailor them to meet your very specific and unique circumstances. In South Africa, Trusts are widely used in estate planning, ranging from protecting assets held for the benefit of individuals who aren’t able to manage the assets themselves - through to assisting high-net worth individuals in implementing estate and succession planning, and wealth preservation strategies.
- Protect your wealth and create a legacy.
- Assist with asset management.
- Help with implementing estate and succession plans.
What is a Trust
A Trust is a legal entity consisting of a Founder, Trustee(s) and Beneficiaries. A Trust can also be described as a three party fiduciary relationship in which the first party, the Founder of the Trust, transfers assets to the second party, the Trustees of the Trust for the benefit of the third party, the Beneficiaries of the Trust. The Trustees of the Trust control the assets of the Trust for the benefit of the Trust Beneficiaries. The Trust Deed contains all of the important details of the Trust, which can be described as a contract between the Founder and the Trustees of the Trust.
Why Momentum Trust?
Our specialised team has the required expertise in setting up Trusts. Once a Trust is established it must be properly administered and the Trustees must correctly comply with their fiduciary duties. We can assist with this process.
Purpose of a Trust
Trusts can be set up for various reasons and tailored according to your needs:
- Protection and preservation of assets such as property, artwork and other investments or business interests for the next generation.
- Charitable purposes or other special causes.
- Minor Beneficiaries: either to hold cash and investments that can pay an income to minor Beneficiaries for schooling or university.
- To hold assets, such as a house, for those Beneficiaries.
- A disabled dependent or an aged parent who may rely on you for financial support, but who may be unable to manage money or assets on their own.
Setting up a Trust
Trusts may be created either during the lifetime of the founder, in which case they are referred to as inter vivos Trusts, or on the death of the founder in terms of his or her Will, in which case they are referred to as testamentary or mortis causa Trusts.
Benefits of setting
up a Trust
If you want to preserve the wealth you have created, ensure continuity of your business or protect family members’ interests, Trusts are useful to achieve these outcomes. It is a flexible and tax-effective option to aid estate planning and asset protection.
We work with you and your financial adviser to guide you through the process of setting up a Trust, which include:
- Deciding on the Trust structure that suits your needs.
- Preparing the documentation required.
- Facilitating the execution of the Trust Deed and related documents.
- Registration of the Trust with the Master of the High Court.
- Independent professional Trusteeship and Trust Administration.
Different types of Trusts
We specialise in drafting and registration of:
- Inter vivos (family) Trusts: Created while an individual is still alive.
- Special Trusts: For minors or beneficiaries with disabilities.
- Charitable Trust: Created for advancement of any purpose considered as charitable in law.
- Mortis causa (Will) Trusts: Created in terms of the Will of a deceased person.