Maximising the benefits of your Trust Structures

A hearty greeting from the iProtect team, we trust that you are all well and prospering amidst the winter and economic chill.

It has become apparent to us that many of our members are not properly and in many instances not maximizing the use and benefits of their structures. The reasons are many and varied but one of the main reasons lies on the fact that many of you view your Trust Structures passively and as we all know when inertia sets in we tend to go with the flow and do the bare minimum.

Our experience has revealed that most of you will have been quite active when you initially set up your structures but then your enthusiasm waned and your trusts are not as active as they should be. At iProtect our exclusive mission is to ensure that you maximize all and any benefits that may be available to you once you have your Trust Structure in place.

Other than emphasizing the need to maximize the benefits that your Trust structure allows and presents it is crucial that the certain SARS, statutory and administrative issues are complied with regularly and on an annual basis. If these steps are not taken and the necessary not complied with you could be exposing your assets to a claim by Creditors, Income Tax during the course of your lifeand Estate Duty on the event of your death.

In order to ensure that the above never transpires we recommend that at the very least the following be attended to immediately and on an ongoing in the future:

1.Ensure that all you assets are transferred to you Trust Structures.

2.The transfer process must be correctly attended to, in order that unnecessary taxes and costs are avoided and where taxes are due that they are minimized.

3.Actively work towards reducing any loan accounts that the Trust may have, and ensure that this is done tax efficiently or you could have a nasty tax surprise.

4.If you wish to protect your home and avoid Capital gains taxes, estate duty and executors fees on the home on the event of your death. Transfer the home to the trust, we can assist and guarantee that the costs will be minimal.

5.Ensure the necessary administration, minutes, resolutions and that proper books of account for the Trust are in order.

6.The Trust must be Tax compliant.

7.The Trust must have the necessary registers reflecting the assets owned by the trust.

8.The Trust must have a bank account, this is a legal requirement.

9.It is our opinion that your Life Assurance, barring retirement, pension, provident and income protector cover be owned by the Trust, failing which estate duty benefits will be lost or the proceeds from the policy could end going to creditors or into the hands of beneficiaries who may squander it.

10.The short term insurance needs of the assets owned by the Trust must be addressed and implemented.

11.Any of you whom have a business must ensure that the business and business assets are correctly structured to achieve Asset protection, Tax and Estate planning benefits.

12.We have previously mentioned that it is crucial that your Last Will and testament be in order and incorporate the Trust structure in line with all the recent court judgments.

We commend you on taking the initial steps to towards protecting your assets and achieving tax and estate duty efficiencies, however to ensure that you continue to enjoy and maximize these benefits you must at the very least have the above steps covered.

A failure to attend to the above minimum steps could be the cause of your structure unraveling and the assets or cash being attached by creditors or being taxed by SARS.

As an iProtect member you are able to avail yourself to our expert team of specialists who WILL make sure that your Trust structures are always properly administered and that you and you beneficiaries always enjoy the maximum benefits of having Trusts in place.