Page 55 - Q&A 2019/2020

transferred to the Guardian’s Fund, which means that any fixed
property will have to be registered in the minor’s name and handed
to the legal guardian to be managed. Should it become necessary
to sell the property, it will only be possible in terms of an order of the
High Court. Fixed property in a testamentary trust can be sold by the
trustees at any time if it is in the best interest of the minor beneficiary.
• Tax benefits. A trust for family members can qualify as a ‘special trust’
as long as the beneficiary is still a minor. While trusts normally pay
income tax at a rate of 45%, special trusts are taxed as an individual
Commercial • Trusts can be used to achieve benefits similar to a usufruct (right of
on all income retained in the trust.
use). For example, a husband can bequeath his entire estate to a trust

of which his wife and children are the beneficiaries, subject thereto

the trust until her death.
that his wife will be the sole non-discretionary income beneficiary of
So, it is clear that trusts are still an important estate planning tool and continue
to offer protection and use if utilised correctly. It remains a specialised planning
tool and it remains advisable to have the assistance of a fiduciary specialist
when deciding to set up a family trust.

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