21 Nov Setting Up A Trust
What should you know about a trust?
A trust is made up of three parties: a trustor, a trustee, as well as a beneficiary. A trust is a legal agreement that involves a trustor, a trustee who does business for the benefit of other individuals (the beneficiaries).
Are there advantages to setting up a trust?
There are many advantages that you should take into consideration:
- A trust can assist in protecting your estate or the estates of your beneficiaries.
- A trust can also hold many types of assets.
- Trusts also offer flexibility. With trusts, your beneficiaries can be provided for, in various ways. You can make a decision about at what age or interval, funds have to be distributed.
It is necessary to consider these important advantages if you want to set up a trust.
What are the disadvantages of setting up a trust?
Here are some disadvantages that you need to be aware of:
- It can cost a lot of money to establish a trust.
- Trusts have to be constantly maintained and updated to make sure that all your assets are included properly.
- Trusts are limited in terms of the protection they provide from creditors.
It is a good idea for you to take these disadvantages into consideration if you are thinking about creating a trust.
What other information do you need to have?
Would you like to set up a trust? If you think it is vital to have a trust, then it is recommended that you meet with an estate planning attorney. Here is something else that you need to think about when it comes to your attorney. The attorney that you choose has to work well with you in order to find out more about your requirements, your goals, as well as your family situation.
Now that you have learned about what a trust is, you can seriously think about whether establishing a trust is the right choice for you. You can decide whether or not you would like to set up a trust.
DR MERVIN MESSIAS
JD (Juris Doctor) / BA, LLB (Wits) / TEP (Trust & Estate Practitioner) / MTP (Master Tax Practitioner – S.A)