In order to draft the Trust, we require the following information:
1. Name of the Trust/s. There is no restriction on the choice of name of the trust, although it is advisable that you do not utilise your first, maiden and/or surname in the name of your Trust;
2. The following details of the Trustee/s:
2.1 Full Name;
2.2 Identity Number;
2.3 Occupation;
2.4 Relationship to you i.e. friend, accountant, brother, etc.; and
2.5 Residential address.
In respect of a Family and residential Trust we advise that you appoint yourself and your spouse as Trustees along with the independent Trustee (discussed in point 3 below). In the event that you are single we suggest that only yourself, along with the independent Trustee, be appoint Trustees of the Trust.
In respect of the Property Trust, in the event that you are married out of community of property, we advise that you appoint yourself along with the independent Trustee. As a trustee of the trust, you will need to sign surety when registering the bonds. If your spouse is also appointed a trustee then she/he to will need to sign surety which will unnecessarily place both of you at risk.
In respect of a Share Trust we advise that you appoint yourself along with the independent Trustee. In the event however, your spouse is involved with the business, it would then follow that he or she would be appointed a Trustee as well. The aforementioned information would also apply to any Business and/or Asset Trust that you may establish.
3. The independent Trustee. We advise that an independent Trustee be appointed e.g your Auditor, Broker or our offices. Please note, if there are only two trustees on your trust, the independent trustee should be a legal entity in order to comply with the National Credit Act. If you appoint our offices, your trust will then be exempt from the National credit Act. We require the following information in respect the independent Trustee:
3.1 Full Name;
3.2 Identity Number;
3.3 Occupation;
3.4 Relationship to you i.e. friend, accountant, brother, etc.; and
3.5 Residential address.
In the event that you wish our offices to be appointed as the independent Trustee, we advise that a monthly fee of R220,00 (excluding VAT) will be charged per client (irrespective of the amount of trusts that you register).
4. The beneficiaries of the Trust. These are the nominated persons who will benefit from the income capital of the Trust. We require their full names and relationship to yourself.
We suggest following be nominated as beneficiaries:
4.1 Yourself;
4.2 Your spouse (if applicable);
4.3 Any descendant of yourself and your spouse (we advise to not specifically name the children to avoid problems with FICA and related legislation and to simply state ‘your descendents’); and
4.4 Any other trust established by yourself (we again, do not specifically name the trusts).
The aforementioned is only a guideline and you are free to nominate any person/s that you so wish
5. In the event that any Trustee is unable to act as a Trustee, it is advisable to appoint a replacement Trustee who will then manage the trust on your absence (essentially on the death of yourself and your spouse). If your children are over the age of 18, we suggest you nominate them. If they are not then we suggest you nominate a family member until such time as they attain the age of 18 (or older if applicable). We require his/her full name and the relationship to you; and
6. Bank. In order to register the trust, The Master of the High Court requires the bank and branch where you will open a Bank Account for the Trust on registration thereof.
In order to draft your wills, we require the following information:
7. The full name, identity number and residential address of yourself and your spouse (if applicable);
8. Please provide us with the full names of your Executor (the individual who will administer your estate on your death) and his/her relationship to yourself;
8.1 In the event that you are married, we suggest that you appoint your spouse as the Executor of your estate.
9. In the event that your Executor named above, has passed away or is unable to act as an Executor, we suggest that you appoint an alternate Executor, please provide us with his/her full names and relationship to yourself;
10. An amount as determined by the Estate Duties Act (currently R3 500 000,00) is usually left to the Family Trust in order that your estate benefit by way of a reduction in estate duty. Please advise if you wish us to implement this. Further, in the event that you wish to leave any specific item to certain individuals, a description of the items and the full names and relationship to yourself of the beneficiaries will be required. Please note, firearms cannot be bequeathed to the trust. You are therefore required to nominate an individual alternatively instruct your Executor to sell the firearm and the proceeds are then left to the Trust;
11. Please provide us with the full names of the Heir to your estate. This is usually your spouse. Spouses benefit in terms of estate duty if they leave their estate or a portion thereof to one another. If you are not married it is advisable to leave your entire estate to the Trust. Please advise whether you wish us to implement this;
12. In the event that you have minor children please provide us with the full names (and relationship to yourself) of the person that you wish to appoint as their guardian;
13. Please advise as to whether you wish to be buried or cremated (with or without organ donation);
14. Please advise whether you require a living will. This is a document indicating your wish not to be kept alive through artificial means; and
15. Please advise as to your Marriage Regime, if applicable (i.e married in community of property or out, with or without accrual).
The fees (excluding VAT) to implement same will be as follows:
setting up the initial trust R5 950.00 each,
any further trust R5 500.00 each,
Perusal and revamping of current trust R5 950.00 each
which would include all attendances, stamps, registration etc,
wills R500.00 each,
Please note that we require EACH and EVERY point to be addressed before we can draft the documentation. We request that you consider every point carefully as once we have received the information and have drafted the documentation, an extra administration fee of R100,00 (excluding VAT) will be charged should you wish to make any amendments.
Should you have any queries in regards to the above, please do not hesitate to contact our offices, alternatively, please email through the requested details in order that we may attend to the necessary.
Yours faithfully
DELGADO VELOSA KENWORTHY & ASSOCIATES INC.
Thursday, February 19, 2009
When lending money doesn't pay - Suze Orman
http://www.oprah.com/article/omagazine/200903_omag_suze_loan
You won't hear me argue against the fact that helping family or friends who are in need is an act of grace. You will, however, hear me argue against lending them money if you can't afford to do so. No matter how wonderful your intentions are or how desperate someone is, you must think twice about loaning money if doing so will imperil your own financial security in any way. Here are four ways to figure out if you can afford to lend a friend a financial hand:
1. You have no credit card debt, your family has an eight-month emergency fund tucked away in a federally insured bank or credit union account, and you are on target with your retirement savings.
2. You can make the loan from extra savings. The last thing you want to do is increase your own debt load to help someone else.
3. You—and your relationship with this person—will be just fine if you are never repaid one penny. You must go into the deal thinking, "I hope to be repaid, but I'll be okay if I am not."
4. Your friend or relative agrees to draw up a simple loan document (for $8 you can download a promissory note from Nolo.com). It should spell out the amount borrowed, when repayment will start, and the interest you will be paid. Yes, you are to collect interest; it's a sign of respect from your borrower.
If you and the potential borrower can't fulfill all these requirements, I don't recommend that you lend them the money. It is not selfish to make choices that protect your financial security; to do otherwise puts you at risk, and no friend or relative would ever wish that on someone they truly love. And if they would, well, they're not much of a friend.
Suze Orman's latest book is her 2009 Action Plan: Keeping Your Money Safe & Sound (Spiegel & Grau).
You won't hear me argue against the fact that helping family or friends who are in need is an act of grace. You will, however, hear me argue against lending them money if you can't afford to do so. No matter how wonderful your intentions are or how desperate someone is, you must think twice about loaning money if doing so will imperil your own financial security in any way. Here are four ways to figure out if you can afford to lend a friend a financial hand:
1. You have no credit card debt, your family has an eight-month emergency fund tucked away in a federally insured bank or credit union account, and you are on target with your retirement savings.
2. You can make the loan from extra savings. The last thing you want to do is increase your own debt load to help someone else.
3. You—and your relationship with this person—will be just fine if you are never repaid one penny. You must go into the deal thinking, "I hope to be repaid, but I'll be okay if I am not."
4. Your friend or relative agrees to draw up a simple loan document (for $8 you can download a promissory note from Nolo.com). It should spell out the amount borrowed, when repayment will start, and the interest you will be paid. Yes, you are to collect interest; it's a sign of respect from your borrower.
If you and the potential borrower can't fulfill all these requirements, I don't recommend that you lend them the money. It is not selfish to make choices that protect your financial security; to do otherwise puts you at risk, and no friend or relative would ever wish that on someone they truly love. And if they would, well, they're not much of a friend.
Suze Orman's latest book is her 2009 Action Plan: Keeping Your Money Safe & Sound (Spiegel & Grau).
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