GETTING TO KNOW ABOUT TRUSTS
What is a Trust?
In the simplest sense, a trust is a concept of law where a person (settlor, founder, grantor or donor) places assets in the control of another person ( the trustee) and these assets are intended to benefit other persons (beneficiaries) or for a specific purpose.
How do you set up a trust?
A notarial deed of trust is prepared by a legal practitioner who is a Notary Public. The notarial deed of trust is registered with the Deeds office.
What are the advantages of a trust?
- Protects the property from the settlor’s creditors.
- Keeps the property separate from matrimonial assets.
- Trust property can be used to generate more income
- It has tax benefits such as exemption of payment of estate duties in the event of death of the settlor.
- It allows one to customize their estate plan.
- It allows flexibility as the terms can be changed anytime.
interesting!