To Trust or Not to Trust

[NetDude]

Should I set up a trust?

In summary, trusts are not appropriate for everyone. However, if set up and administered properly, they still provide real and substantial advantages which could benefit you and your family.

Make sure you obtain expert and independent advice before making the decision.

So, who on myBB have got one of these? Any additional advantages perhaps not mentioned here?

 

[Freshy-ZN]

We have an offshore discretionary trust in Guernsey. Setting up a trust is not a small thing. The advantages in that article are pretty much all there like asset protection, management. One of the big things is that when you die the assets in the trust are not subject to the normal procedures and are unencumbered.

The big thing you need to decide is local or offshore. Local meaning large chunks of any profits to tax, offshore....maybe not although technically if you have an offshore trust in say Guernsey and you are resident in RSA then SARS expects to get its cut. The reality might be not so cut and dry if you get my drift.

Lots of different options to consider so definately something you need to speak to a professional about.

 

[Nokkie]

what he said.

 

[Fudzy]

When I was looking at keeping two properties, I asked this forum about the best route from a tax POV and somebody mentioned keeping it in a trust would be beneficial. I'll try find the thread.

 

[Milano]

Thought about this a few years ago but then I got distracted. Seems better suited to those who can handle it hands on, otherwise I see potential risks. I shelved it but may try it in my next life.

 

[Freshy-ZN]

When I was looking at keeping two properties, I asked this forum about the best route from a tax POV and somebody mentioned keeping it in a trust would be beneficial. I'll try find the thread.

Again it all depends on if the trust is offshore or not. For eg we have a property that is owned by our trust via a company registered in British Virgin Islands which in turn owns the shares in a locally registered company which in turn owns the property.

It comes back to the fact that a trust, even though very useful in certain situations, can be complicated and requires careful planning in the setting up and administration of it.