SERIES: What does Eksekuteurs do? Trusts

The importance of a purpose trust.

Secure your legacy and protect your loved ones

Planning for the future is a responsibility we all need to take seriously, even if it's sometimes the last thing you want to think about. It doesn't come naturally to anyone to think about a future for your family without you in the picture, but it's especially cardinal when it comes to your loved ones and the assets you leave behind.

A good Trust structure can help facilitate the carrying out of your final wishes. Having a will ensures that all your last wishes are listed in a clear and unambiguous way, and prevents your heirs from getting involved in expensive litigation. If you were to die without leaving a drawn up will, you will be said to have died 'intestate' and the rules of intestate succession will determine who will get ownership of the property you leave behind.

Eksekuteurs for estates and wills offers purpose-built trusts:

Children's Trust

A Children's Trust is created for minor children under the age of 18 at the time of the Testator's death and remains in effect until they reach the age specified in the Will and are capable and mature enough to manage their own finances . A children's trust is classified as a Type B testamentary trust which involves certain beneficial tax exemptions through SARS.

Widow's Trust

A widow's trust is a testamentary trust created to protect the surviving spouse, who may be financially illiterate or may not be able to manage the funds inherited. The spouse must be the sole income beneficiary of the Trust for the duration of their lifetime. The purpose of the Widow's Trust is to provide them with an income, while preserving the capital of the Trust to ensure that the inheritance can still be passed on to the children.

Supplier's Trust

A provider trust is established to ensure the ongoing financial support of an individual who may not be able to provide for themselves financially or manage their own finances, such as children with special needs. In many cases, children with special needs can outlive their parents and the Provider Trust ensures that their inheritance is not abused by guardians or other family members. Usually, children with special needs require special medical care and ensuring their financial well-being is a parent's biggest concern.