CONTRACTS AND TRUSTS
Why a Trust – advantages of setting up a Trust?
The main reasons for setting up a trust is: The protection of assets To reduce the amount of Estate Duty that may be payable upon death To protect assets in the event of insolvency
Disadvantages of a Trust
Higher rate of taxation (40%) Higher percentage of capital gain taxable Cost of administrating trusts.
What is a trust – in general
A Trust is an arrangement whereby Trust assets are managed by one or more persons (Trustees) for the benefit of others (beneficiaries). The Trust does not form part of the assets of the Trustees and the Trustees hold the assets for the benefit of the Beneficiaries. The assets are thus protected in the event of the Trustees becoming insolvent, or where Beneficiaries are minors – it properly protects the assets until such time as the Beneficiaries become entitled to the assets.
“We also have extensive experience in drafting of commercial contracts, specifically the following: i. Sale of Business; ii. Sale of shares in Companies; iii. Lease agreements; iv. Purchase or transfer of property in Companies and Trusts; v. Joint Venture agreements; vi. General commercial contracts.”
Why use us?
Although it is a relative simple process to enter into a Trust Deed and to “form a Trust”, the Courts have in a number of cases decided that only a properly constituted Trust renders the protection that the Trustees or the Founder hoped for. It is therefore of the utmost importance that Attorneys dealing with commercial matters on a daily basis, after proper consultation with a proposed Founder or Trustees, draft the Trust Deed in such a way that it renders the protection and meets the requirements of a proper Trust Deed. We are experienced commercial Attorneys and we believe that we will, after proper consultation, be able to draw up a Trust Deed that would not only meets your requirements, but also meet the requirements of the Trust Property Control Act and furthermore all relevant Legislation.