Trusts -Trustees Authority

I see it so many times in practice that clients just assume everything is still in order with their Trust and providing us with a copy of his/her Storage Trust document.

The most popular reason buying in a trust is for estate purposes. Be careful, as many times the funds still come from an individual to fund the transaction and the loan will be recreated in favour of the individual (which will form part of his/her estate) and haven’t kept (Section 7 C of Income Tax Act) in mind where donation tax can be incurred on by the Lender.

RECORDS

Keep records of any changes of the Trust, for example, changing of Trustees, adding of beneficiaries etc. follow the procedure as prescribed in your Trust document.

BANK ACCOUNT

This is important as it is a requirement for a valid trust as well as proper financial records by at least an accountant and no necessarily an audited statement (depending on the type of Trust.

ACTING ON BEHALF OF A TRUST

A trustee can only act on behalf of a trust if he is duly appointed and the Master issued a Letter of Authority. If a Trustee or someone else acts on behalf of a Trust, there must be a resolution signed by all existing Trustees authorizing the person to act on behalf of the Trust and such resolution recording the boundaries of the person’s authorization. If you enter into a contract with a Trust make sure about the above.

 

In short, it is good practise to review your Trust regularly and understand the purpose of the Trust and Tax implications.

 

Every situation is different and therefore if it is pro-active you can avoid unnecessary negative consequences.

For any enquiries please make an appointment at our offices and/or send us an email.

Marriage Contracts – Never to be skipped

Marriage Contracts

Too often the purpose of marriage contracts is associated with divorce, but there are much more to having one than that.

A Marriage contract does provide for division of assets on dissolution of the marriage, but not only by divorce, but also by death. You can have a happy marriage for many years and still benefit from the protection a marriage contract.

Property Sales and Deceased Estates

If you are the Purchaser of a property which involves a deceased estate, there are a few essentials of which you should be aware.

When a person passes away, the Master of the High Court appoints an Executor of the Estate to administer the winding up, which includes collection of the assets of the deceased, payment of the outstanding debts and thereafter distribution to the heirs of their inheritance.

Retirement Planning – Is Life right Property right for you

Let’s start off by looking at: What is life right property?

The SA association of retired persons, SAARB, describes the Life Right ownership option as ‘a guaranteed right of occupation of individuals for their lifetime, whereby ownership is retained by the administering authority, and is resold after the demise of the last dying person’.

Wills – Passing without a will, DIY, Assets overseas, who may inherit

THE IMPORTANCE OF A WILL

In our modern day and life we are busy rushing from point A to Z and we seldom take a moment and possibly avoid thinking of our own mortality. The danger that lies therein, is that we fail to do the necessary estate planning. What happens to all the things you have accumulated in your lifetime upon your death?

Voetstoots and Building Plans

You have finally found your dream home in the right neighbourhood, took the plunge and signed the deed of sale. You cannot wait to move in, but upon inspection of the building plans, you find out that the cosy granny flat that you intended to use as an art studio is not on the building plan. All too often in circumstances such as these, the Purchaser will simply be answered by the Seller with a raised defence of the ‘voetstoots’ clause.

Services

Property Law, Conveyancing, Commercial Law, Contract Law, Drafting of Wills,
Trust and Estate Planning, Administration of Deceased Estates and Notarial Work.