Succession Planning

Many owners trade as sole proprietors, in a partnership or directly own the shares in a Company or members interest in a Close Corporation. Structuring your business this way will not guarantee that the benefits accruing from their business interests will flow to the persons they intended.

The correct Corporate Structures owned by Trusts coupled with the necessary agreements must be implemented and executed to ensure continuity of the flow of benefits and the elimination of any costs, taxes and duties on the event of the death of an individual.

The above applies equally to an individuals investments, properties and commercial property interests.

It is critical that income producing assets or appreciating assets are correctly structured to ensure that a legacy is created and that the assets are not sold, very often way below market value to meet creditors claims, or to cover taxes, costs and duties which arise on the death of an individual.

Structuring will ensure that the legacy survives an individual’s death.

Trusts allow for the best mode of succession planning as the South African Trust Law allows for a Trust to continue in perpetuity.

A word of advice, we suggest that a properly drafted Will be executed in order to ensure that the individual does not die intestate. It is also very important who you nominate as Executor of your estate and ensure that the Trust structure is addressed in your Will.

The Will also allows the individual to capitalise on various estate duty exemptions, and certain tax relief.