Administration of Trusts with Special Needs (Mentally incapacitated Beneficiary or Minor Children)

In this category of Trusts, we take over the complete administration of the Trust – investments, budgets, allocation of payments and income etc. This service usually comes to life when parents of minor children allowed for a Trust to be formed in the unfortunate event that both parents die simultaneously. Our expert Trustees will then manage this trust to make sure that the legacy of their parents will live forever by completing the objective for which that Trust was established. You can always put a Trust under administration with us where there are beneficiaries not capable of making sounds financial decisions.

The purpose of the Special Trust is to maintain the beneficiary with the special needs. The special needs can either be physical and/or mental. It is important to have Trustees who understand the beneficiary’s needs, who understand how to budget and invest and understand the law related to Special Trusts.

Please see a video below regarding a Special Trust for people suffering from early-onset dementia.

a. Wills

WHAT IS A WILL AND WHY IS IT IMPORTANT TO HAVE ONE?

• A declaration of what a person wishes to happen with his property after his death;
• Ensures that your property gets divided between the nominated heirs of your choice;
• Gives you the opportunity to nominate a competent executor of your choice and negotiate the executor’s fee upfront and at discounted rates;
• Provides for your wishes for guardians of your minor children; and
• Ensures that you do not pass away intestate (without a will).

It is important to have an up to date and revised Will in order to correctly portray a client’s wishes, have up to date legislative changes taken into account, make sure that the Will can easily be executed and whether it is tax efficient.

A video we created specifically for wills week, which gives an overview of how we fit into Futurum Financial Group as well as two Testimonials of client’s whose families’ estates we have done.

b. Trusts

There is a saying that goes something like this: “A Trust can be used to address financial problems, marital problems, religious problems, tax problems and cultural differences – a useful vehicle indeed but beware, its kind nature allows a person to abuse and even misuse it. It is not to say that this good-natured vehicle will take the abuse or misuse kindly”.

It is only now, nearly 176 years after the first reported judgement in which a Trust was mentioned, was decided upon in 1833 (Twentyman v Hewitt 1833), that South Africans are really beginning to understand the true nature of this kind-hearted beast and how it should be ‘handled’ in order to bring the best out of it.

Trustees for the Future specialises in Trusts, acting as Independent Trustees, drafting new Trust Deeds, amending Trusts, appointing and removing Trustees and administrating Trusts to be in line with precedents and legislation.

WHAT IS A TRUST AND WHY SHOULD YOU HAVE ONE?

• Vehicle for protection of minors, wealth and/or persons with limited financial capability or limited mental- or physical capability;
• Protection of assets and provision of income for generations to come;
• Prevents continuous transfer of assets and costs involved;
• Flexible estate planning tool that protects your assets if correctly administered; and
• Separation of ownership of assets, to hold and administer assets that must benefit more than one person but cannot be subdivided (like agricultural land).

Consult with one of our experts today and make sure that you can trust your Trust. You can trust Trustees for the Future.

“Losing a family member is probably the most difficult situation you will ever face.”

WHAT IS THE ADMINISTRATION OF A DECEASED ESTATE?

Estate administration is both complicated and potentially confusing. The executor plays an integral role in ensuring that the process is handled professionally and efficiently. The executor’s function may be summarized as:

• Taking control of the assets which form part of the estate;
• Protecting and preserving the assets in the estate;
• Properly identifying the heirs in the estate;
• Carrying out the legislative requirements regarding the administration of an estate;
• Paying the debts and the administrative expenses of the estate; and
• Attending to the final tax returns of the deceased.

FACTORS TO CONSIDER:

Choose your executor wisely and ensure that you and your family have a well-established relationship with that person or company.

WHY?

Pain pushes us to question everything! Your family will be in pain after you are gone and prone to argue and question everything - even each other. Ensure that you leave the responsibility of the administration of your deceased estate to somebody who really knows how to do this and that this person or company is known to and trusted by your family. Do not leave this task to a family member who is bereaved and not always able to think clearly.

BY WHOM?

Make the decision yourself and then discuss the reasons with your loved ones.

When will cash be available for living expenses?

If you were married in a community of property to the deceased person, access to cash can take some time. Your account will be frozen by the executor until he is sure that the estate is solvent. Cash from the estate itself may be advanced to you once the executor is confident that he can do so. Access to funds can be arranged meanwhile.

How can I be sure that the assets I should receive won’t disappear? The Master of the High Court oversees the executor’s work. The Master’s function is to protect the rights of heirs and he/she will ensure that all assets are secured for the correct beneficiaries.

Trustees for the Future will expertly assist you and your family in case of the death of a loved one and will see to the administration of the deceased’s estate with the necessary due care, skill and diligence it deserves. It is of the utmost importance to choose your nominated executor wisely.

Read the article about unexpected expenses incurred in the administration of a deceased estate here.

a. Estate Planning

While Estate Planning and Financial Planning may seem to some to be the same thing, this is definitely not the case.

Although Financial Planning deals with the cash shortfalls of a client’s estate and income after the death of the client for the family, it is also about creating wealth for retirement for the client.

Estate Planning entails the minimising of the estate costs payable on the death of a client as well as the protection of assets while still fulfilling the wishes of the client and providing for his/her dependants, as well as other factors that need to be considered carefully.

A comprehensive Estate- and Legacy Plan can give effect, regulate and structure the following, regardless of your age, the complexity, or size of your estate:

• Ensure that the minimum costs will be incurred from tax, estate duty and executor’s fees (for example, by reduced executor fees that are pre-agreed upon).
• Identify anticipated additional costs to be paid from the estate such as estate duty, capital gains tax and possible claims against your estate as result of guarantees signed by you and creating liquidity for these liabilities.
• Protect assets after your death.
• Make sure that your estate is administered correctly and in an effective and timely manner.
• Ensure that your heirs will enjoy maximum benefit from the legacy you have left behind and that the provision made for them is adequate and sufficient.
• Ensure that your business continues.
• Executor fees can also have a large effect on the liquidity of an estate, which is why executor fees need to be negotiated before death. The success of the Estate Planning process is subject to the provision of correct information regarding assets, values of assets, contractual obligations and the communication of the client’s specific wishes.

Factors influencing a holistic Estate- and Legacy Plan

• Changes in your personal and financial situation;
• Purchasing of assets;
• Selling of assets; and
  Changes in legislation (budget speech, tax changes etc.).

A well-structured Estate Plan must be strategic, flexible, fair, and practical and it must be tax efficient. Success is further subject to the annual revision of the client’s Will and Estate Plan to adjust to personal and regulatory circumstances.

It must be done by an expert. At Trustees for the Future, we test at least 14 aspects pertaining to your estate plan before we advise you accordingly.

b. A Second Opinion

Let our experts review your current Will, Trust, Estate or Buy and Sell Agreement for you and let you know if any changes need to be made, ensuring your peace of mind when it comes to your legal documentation.

Times change and our experts are up to speed on all matters affecting your Will, Trust, Estate or Buy and Sell Agreements.

a. Company Secretarial Services FOCUSED on CIPC

From registering a brand-new company to keeping your annual returns up to date, our Company Secretarial Services can assist you with all your corporate needs. We provide all CIPC related services which include:

• Company registration (Profit and Non-Profit Companies);
• Company Name Changes and Reservations;
• Lodgement of Amendments to standardised MOI’s or amendments to customised MOIs;
• Conversions of Close Corporations;
• Amendment to Directors, Members and Address;
• Lodging of Annual Returns;
• Lodging of Documents with CIPC;
• Document Disclosure; and
• Share certificates and Safe Keeping of Original Documents.

b. Company Secretarial Services FOCUSED on Corporate Governance.

We specialise in the customisation of your Company’s Memorandum of Incorporation to be structured appropriately to be aligned with shareholder agreements and other related matters. We also specialise is setting up customised Buy and Sell Agreements specifically catering to the dynamic of the said business and its shareholders and ensuring the terms of the agreement are aligned with any insurance policy which you may have in place.

We also assist small and medium enterprise businesses ensuring that an organisation complies with standard financial and legal practice and maintains high standards of corporate governance.

Our services typically include:

• Keeping records such as lists of directors and shareholders up to date;
• Organising and taking minutes of annual general meetings and board meetings;
  Keeping up to date with company law; and
• Advising directors and board members about their legal responsibilities.

Read the article about company secretarial services, a service every company in South Africa should consider here.