One of the ways in which personal property or business assets can be safeguarded for the benefit of a person or persons referred to as beneficiaries is by means of a Trust. A Trust can be a valuable tool to utilise in order to ensure that property is effectively managed and protected. However, people are often unaware of the legal nature of Trusts and the benefits of creating a Trust.
In South Africa, there are various types of Trusts. Two popular types are the inter vivos Trust and the testamentary Trust. An inter vivos Trust is created by means of a contract whereas a testamentary Trust is created by means of a Will.
The benefit of creating a Trust is that the property or assets is managed in such a way as to ensure that the beneficiaries eventually benefit thereby. This occurs by means of ensuring that there is a separation between the interest of the beneficiaries and the people who manage the property. The same person cannot be the only person to manage the property and a beneficiary.
For all your questions and queries concerning Trusts, please feel free to contact Tuckers Attorneys at (011) 897 1900 or 076 777 1920 (afterhours) or email@example.com.
Article contributed by Anri Swanepoel of Tuckers Attorneys.