Structures for intergenerational wealth transfers
Trusts and international pensions have been used for generations to provide a secure and tax-efficient structure to protect family wealth. Over time, the tax treatment of trusts and pensions has changed, but they remain a useful entity to manage your financial assets while you are alive and to pass on to your family dependents after you’re gone.
There are two types of trusts in South Africa: vested and discretionary trusts. Vested trusts set out the beneficiaries’ benefits in the trust deeds, while discretionary trusts give trustees full discretion to decide how much beneficiaries will benefit.
Outside of South Africa, there are a number of other options in internationally recognised and investment grade jurisdictions. You may feel safer knowing that your trust assets reside in a jurisdiction that offers government-backed investor protection, so you know your money is safe.
Trusts and international pensions are complex, and it is advisable to work with a professional who has the legal and financial planning expertise to guide you through the process. Setting up a legally sound trust or international pension will enable you to manage your assets cohesively and pass them on to your dependents in a structured and secure way.
Our team at Holborn are experts in the field of trusts, pensions and other suitable structures for South African residents. Let us guide you in your journey to protect your family wealth in generations to come.