Page 28 - Waterfall City Issue 11 November 2023

Waterfall City News

FAMILY TRUSTS

Effective financial planning tools, despite stricter tax controls

By Mariska Redelinghuys, Legal Specialist Advice, PSG Wealth Management

D espite having fallen out of Some of the ways in which your family

favour in recent years due
can benefit from including a trust in
to the implementation
their estate plan are explored below.
of stricter measures to
prevent tax avoidance, trusts are Estate pegging
still one of the most effective estate Estate pegging involves transferring
planning tools for families – even assets from an individual’s estate into
more so when you take family a trust via a loan account. The benefit
pricing into consideration. of this in family financial planning
is that whilst the loan account will
A trust is a legal structure set up remain an asset in the estate of the
by a founder into which assets are deceased family member, growth on
transferred and administered by the asset will be allocated to the trust,
trustees for the benefit of one or thereby limiting future executor’s fees
more beneficiaries. The assets are and estate taxes payable by the estate
administered in accordance with a of the deceased family member.
trust deed (in the case of an inter vivos
trust) or the deceased’s will (in the A trust does not die
Mariska Redelinghuys, Legal Specialist Advice case of a testamentary trust). When a family member who is a

26 Waterfall City Issue 11 2023