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What are trusts?

Trusts are legal agreements which can be used as a formal tool for planning your investments. Trusts arrange for the holding and management of assets by a person, a corporation or an association with the intention of providing for the beneficiaries. Trusts lay down the rights and duties among the parties of a trust - trustor, trustee, and beneficiary. A trustor is one who transfers funds or assets to a trust. The person who holds the legal title to the trust is the trustee. It is the trustee who manages the trust's assets to behalf of the beneficiary. A person for whom the assets of the trust are held is the beneficiary. Trust fund is the term used to refer to the assets held in trusts.

Although many wealthy people use trusts for a variety of reasons, trusts are tools that can be used by anyone to accomplish certain financial objectives. A family trust can be used to split income between family members, reduce probate and estate duties, and protect the trust fund assets from creditors. Family trusts assist with safeguarding assets for future generations and ensure that your wishes are carried out while meeting the needs of your beneficiaries.

There are two types of trusts used for tax purposes. Namely, inter vivos trusts and testament trusts. Inter vivos is usually an investment trust setup while the trustor is still alive to manage the trust fund for the beneficiaries. This is often seen as a better alternative than simply handing over the asset to the beneficiary and ensures that the trust fund is used for the purposes intended by the trustor. Testament trusts are usually family trusts created in the will of the trustor and takes effect upon that person's death. Testament trusts name your heirs as beneficiaries of the trust fund, instead of leaving your assets to your family directly.

Before creating a trust fund you must decide what it is you wish to accomplish. You will also need to understand the income tax and legal implications associated with trusts. You will need to decide on several important issues including; who will act as trustee? What assets will be transfer into the trust fund? Who are the beneficiaries, and how will their needs of the trust beneficiaries be met? Will the trust come into effect before or after your death? Will the trust be revocable or irrevocable? And how long will the trust operate?

register Contact a PSG Konsult fiduciary advisor to setup a trust fund for your beneficiaries.

How can I start a trust fund?

Speak to a PSG Financial Advisor. We have more than 200 offices throughout the country that can ensure you peace of mind. You can search for offices by region, by advisor name or by advisor speciality. You can also request to speak to an advisor and we will ensure that one of our highly skilled advisors contact you.

What are the advantages of offshore trusts

PSG Konsult Trustees Limited is a Corporate Trustee regulated and licensed by the Financial Services Commission of Mauritius to provide Corporate Trustee Services.

There has been a lot of discussion about offshore trusts over the years. Some for, some against.

These are some of the benefits of offshore trusts:

We can provide you with a step by step guide to setting up your offshore family trust fund.

register Get the best estate planning advice for structuring offshore family trusts or investment trusts, contact a PSG Konsult fiduciary advisor.

What is the role of estate planning when forming trusts?

Estate planning involves managing a person's assets, which can be done through an investment trust, while they are alive and the distribution of those assets when that person passes away. Estate planning allows for the orderly administration and disposal of a person's estate, which is clearly defined in a family trust. Estate planning involves the process whereby a client's financial affairs in respect of his will, property, trusts, insurance, income tax and estate duty are restructured to achieve certain objectives.

The following aspects must be covered when estate planning:

Who creates the trusts and what services are available?

PSG Konsult Trust (Pty) Ltd is an independent trust and fiduciary services company which offers services to structure a client's estate in respect of his will, property, trusts, insurance, income and estate duty.

Our service offering is as follows:

register Make the right choice, contact a PSG Konsult fiduciary advisor to setup an investment trust or family trust.

Where can i find more information about trusts?

You can find more information about our different types of trusts on our FAQ page.

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