In the personal finance feature, certified financial planner Paul Roelofse highlights the pros and cons of having a trust.
Roelofse says that SARS and various committees have been paying a lot of attention to trusts and adds that you really need to take a step back and ask, do I really need a trust?
When you do take out a trust it’s essentially to protect the assets that you have against creditors and we call that assets protection.— Paul Roelofse, certified financial planner
Roelofse says that if you operate in a risky environment and feel like you have a lot of growth assets, then you’d want to take your personal assets and put them in a trust.
Roelofse adds that a trust is a way of relinquishing control of your assets and passing them on to a trustee who will have full control of them.
The downside of a trust is that it taxes at a very high rate - it taxes at 48%.— Paul Roelofse, certified financial planner
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