TRUSTS & AUDITS

Trusts deed drafting and registration  

 

Trusts remain one of the most flexible and tax effective vehicles to facilitate the estate planning and asset protection objectives of affluent and high net worth families. Our fiduciary specialists can advise you of the benefits of a trust in relation to your particular circumstances and needs. Our service includes the drafting and registration of inter vivos (family) trusts, special trusts (for minors or for beneficiaries suffering from a disability), charitable trusts and other specialist types of trusts.

 

What we offer:

 

1. Trusts – risk, audit and governance review

All trusts require regular reviews to ensure that they are up to date, both in relation to your family’s circumstances and needs, as well as in relation to legal changes resulting from judgments handed down by our courts and changes to the tax treatment of trusts by the South African Revenue Service. In addition, the vast majority of trusts in South Africa are not administered correctly leaving them at risk of being attacked as invalid. Such an attack, if successful, can leave your family’s assets vulnerable to creditors and result in punitive tax consequences.

 

 

2. Professional trustee and/or administration services

As an appointed trustee/administrator on a trust, in partnership with you, Taxlex Fiduciary Services take responsibility for the following:

 

Take-on procedures

-           For a new trust that we set up:

Drafting and registration of the new trust, client due diligence and take on process and initial meeting with co-trustees.

 

-       For an existing trust:

Risk and governance audit of the trust, substitute trust deed, trusteeship changes (resignations and acceptances), liaison with the Master’s Office, client due diligence and take on process and initial meeting with co-trustees.

 

Independent trustee service

Acceptance of the appointment of Taxlex as an independent professional trustee and administrator of the trust by the Master of the High Court (includes the administration services set out below).

 

3. Administration service

-          Secretarial: Drafting the agenda and minutes for the annual trustees meeting, arranging for signature and implementation of decisions made at the meeting.

-          Annual trustees meeting: Arrange, attend and chair the meeting at our offices.

-          Monitor and attend to trust income to be collected and trust payments to be made.

-          Resolutions for the administration of the trust: Drafting and arranging signature and submission to the Master (where necessary).

-          Distributions to beneficiaries: Verification, FICA, and accounting to each beneficiary for tax compliance purposes.

-          Legal: Identifying agreements required for the proper administration of the trust.

-          Investments: Appointment of trust’s financial adviser, updating of asset values on a quarterly basis.

-          Tax Compliance: Appointment of the trust’s tax compliance officer; ensuring that the trust’s tax returns are submitted to SARS timeously by the trust’s tax compliance officer.

-          Accounting: Appointment of the trust’s accountant; ensuring that accounting records are kept for the trust and that annual financial statements are drawn up by the trust’s accountant.

-          Maintenance of the loan account from the founder/donor.

-          Trust’s minute book: Maintenance and safe custody.

-          Trust’s compliance file: Maintenance and safe custody.

 

Termination procedures

The termination of a trustee or administrator relationship includes drafting necessary resolutions, drafting documents and liaison with the Master to amend the Letters of Authority (where necessary), liaison with beneficiaries, financial adviser, accountant and new independent trustee, transfer of compliance documents to the new independent trustee and further incidental legal and administrative tasks.