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BENEFITS OF A TESTAMENTARY TRUSTS
Under South African law minors cannot receive their inheritance directly. To prevent funds from being deposited
into the Government’s Guardian’s Fund, it is beneficial to create a trust for one’s minor beneficiaries in a Will.
A Testamentary Trust will qualify to be registered as a Special Trust with SA Revenue Services if:
Special Trusts qualifies for tax advantages (income tax and capital gains tax) as these trusts are mostly taxed at the rates applicable to individuals (exceptions do occur).
* Minor heir – in terms of current legislation any heir under the age of 18 is considered a minor
* Guardian’s Fund – The Guardian’s Fund falls under the administration of the Master of the High Court. It is a fund
created to hold and administer funds on behalf of various persons, including minors, unborn heirs, missing or absent
* Income Beneficiary – a person who will benefit from the income of the Trust
* Capital Beneficiary – a person who will ultimately inherit the capital of the Trust
- Testamentary Trust - termination date is a specific date chosen by the Testator/Testatrix whereupon the trust must
terminate and the assets duly made over and/or paid to the Capital Beneficiary/ies.
- Inter Vivos Trust – termination date can be a specific date chosen by the Founder of the Trust whereupon the trust
must terminate and the assets duly made over and/or paid to the Capital Beneficiary/ies. The Founder may also allow
for a specific date to be chosen by the Trustees, when they unanimously so decide (discretionary termination).
It is essential to include a testamentary trust in one’s Will!
Any trust queries can be directed to firstname.lastname@example.org
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