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December 18, 2015
Trusts: Risk vs reward

Trusts: Risk vs reward

by | Feb 4, 2026 | , , ,

Death eventually knocks on everyone’s door. While it is an uncomfortable certainty, it serves as a timely reminder of the importance of proper estate planning. A well-considered estate plan provides peace of mind that sufficient provision has been made for loved ones and that assets will be managed and transferred efficiently after death. In South Africa, trusts are frequently used as part of this process and, when correctly structured and administered, trusts can be an exceptionally powerful estate planning tool.

Trust loans and their tax consequences

Trust loans and their tax consequences

by | Feb 4, 2026 | , , , ,

Advisors and clients still use loan accounts to transfer assets into trusts, often perceiving them as simple and efficient structures. The idea seems straightforward: rather than donating assets and triggering donations tax, an individual sells assets to a trust on a loan account, allowing the trust to grow its wealth over time. In practice, however, these loans often accumulate and remain outstanding for years, creating unintended tax and estate-planning consequences. What begins as a seemingly straightforward arrangement can, over time, undermine the very purpose of establishing a trust.

Why Independent Trustees matter in Testamentary Trusts

Why Independent Trustees matter in Testamentary Trusts

by | Feb 4, 2026 | , , ,

Transparency and accountability are fundamental to sound fiduciary decision-making, particularly where a will provides for the establishment of a testamentary trust holding assets for the benefit of minors or other vulnerable beneficiaries. It is common practice for close relatives to be appointed as trustees in these trusts. However, as governance standards have evolved, so too has the recognition that good intentions alone are not sufficient. Modern fiduciary practice increasingly emphasises the appointment of an unbiased, independent trustee to ensure that decisions are made with the necessary expertise, impartiality, and avoidance of conflicts of interest.

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