Die trust se toekoms as suksesvolle uitweg vir boedelbeplanning

Abstract

Nowadays, when the word trust is mentioned, it seems as if only negative thoughts come to mind. In the past the trust was used as a means to avoid taxation, but now that taxation laws have been altered, less people consider trusts when estate planning is done. This study has been done to prove that the trust is still one of the best methods to limit a person's estate for estate duty purposes. To understand and comprehend trusts fully, one must look at its history, the types of trusts - namely the inter vivos trust and testamentary trusts - the framework and features of the trust. In so doing, a complete picture of the trust is obtained. Because the trust is used to decrease a person's estate duty, the study looks at what the estate and estate duty entail. Most people consider their tax planning as highly confidential and are therefore unwilling to share this information. No empirical research was therefore considered. An explanatory approach is used that involves the interpretation and understanding of text and facts. Comparable examples will be investigated to confirm the hypothesis that the trust is still an effective tool for estate planning. The 1998 changes to trust legislation did not affect the trust drastically as far as estate planning is concerned. The losses that are now limited as income tax deductions for beneficiaries are not applicable to estate planning. It has, however, a negative effect on the business trust. The change in the income tax rate is purely for the income remaining in the trust and has no effect on the income that is enjoyed by the beneficiaries. All trusts earning an income of more than R100 000, not distributed, pay less tax now than previously. Capital gains taxation will have an impact on the trust but the trust will remain the most appropriate estate planning technique, as long as the trust deed is flexible. To protect your assets as well as providing for the family and the estate planner, are the main objectives of estate planning. Any tax reductions will only be a bonus. Tax avoidance should never be the main objective when a trust is formed.