What is an inter vivos trust?
An inter vivos, or living, trust is created during the founder's lifetime and holds assets on behalf of beneficiaries, managed by appointed trustees according to the terms of the trust deed. It is a separate legal entity distinct from the founder, trustees and beneficiaries personally.
Why people use trusts
- Protecting assets for the benefit of minor children or vulnerable beneficiaries
- Estate planning, including reducing exposure to estate duty on death
- Continuity of ownership for family or business assets across generations
- Ring-fencing certain assets from personal financial risk, where structured appropriately
How we assist
We assist with the registration of trusts in collaboration with our consultants. The process may include preparing the required trust documentation, coordinating the relevant information and supporting the submission to the Master of the High Court for the issuing of Letters of Authority.
Ongoing obligations
A trust must be administered separately from its trustees' personal affairs, with its own bank account and accounting records, and is subject to specific tax and reporting obligations. Poorly administered trusts can lose their protective benefits, so ongoing compliance matters as much as the initial registration.
AJ van Tonder Inc Attorneys