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Where the Trust itself is taxed, it is taxed at a flat rate of 45%. Special Trusts are taxed on a sliding scale from 18% to 45% (same as natural persons). Top Tip: Trusts do not qualify for any of the rebates provided for in Section 6 of the Income Tax Act.
The registration number of an inter vivos trust starts with the letters IT, followed by a number issued by the Master of the High Court's office, followed by the year the trust was registered.
A trust is a legal arrangement whereby control over property is transferred to a person or organisation (the trustee) for the benefit of someone else (the beneficiary). You can register two types of trusts, namely the inter-vivos trust and the testamentary trust.
Deeds Office Search: If the trust owns property, a search at the Deeds Office can provide confirmation of the trust's ownership and registration. Consult with a Trust Attorney: Engaging with a professional who specialises in South African trust law can provide clarity.
Setting up a trust can cost between R4,000 and R12,000. Careful consideration must be given to the wording of the trust deed because you want to ensure that the trust is both tax effective, and also that your family will continue to benefit when you die.