Both options have distinct advantages, and understanding their benefits is crucial in making an informed decision that aligns with your specific needs and objectives.
Extra-marital children have an equal claim to the deceased's estate alongside children born within the marriage. This recognition ensures fairness and prevents any discrimination against children based on the marital status of their parents.
Intellectual property (IP) assets, such as patents, trademarks, copyrights, and trade secrets, can also be transferred into a family trust. This can provide protection against infringement, unauthorized use, or misappropriation of valuable IP assets.
Millennials are the first generation to fully embrace the digital age. They often have extensive online presence, including social media accounts, cryptocurrency wallets, and digital photo libraries. A will can address the management and distribution of these digital assets, providing clear instructions on how to handle valuable online accounts and ensuring that sentimental or monetary value is preserved.
In South Africa, family trusts are taxed at a flat rate of 45% on income generated during a tax year. When assets are transferred into a family trust, donations tax may be applicable if the transfer is deemed a donation. Donations tax is currently set at a rate of 20% and is levied on the value of the asset transferred. However, certain exemptions and thresholds exist, such as the annual donations tax exemption of ZAR 100,000 per person.
Every trust in South Africa has to register as a taxpayer in terms of the Income Tax Act. In terms of the recent amendments, the South African Revenue Service (SARS) is one of the entities given access to the Master’s portal.
