The Savings Pot and Retirement Pot are both subject to equal division under Section 7(7) of the Divorce Act, reducing the value of the Savings Pot through withdrawals could lead to disputes or the need for financial recalculations.

Compliance with SARS is not optional but a legal obligation. Failure to meet these obligations can result in severe consequences, including penalties, fines, and legal actions. It is crucial for trustees and beneficiaries to be aware of their responsibilities and ensure that all tax-related matters are handled diligently.

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.