Overview

When it comes to the taxation of trusts, there are three potential taxpayers. This is determined by

A) how the trust is established—testamentary versus inter vivos,

B) how the trust is funded (e.g., loan account, donation, or other settlement), and

C) the powers of the trustees (e.g., discretionary versus vesting).

These factors determine who is taxed on what and when. The three potential taxpayers could be 1) the founder, settlor, or donor, 2) the beneficiaries, and 3) the trust itself, with the trust being the taxpayer of last resort.

Understanding who pays what, when, and why affects the taxation of the taxpayer, the estate planning for the donor/settlor, funder, and beneficiary, as well as what is disclosed in the Annual Financial Statements of the Trust.

Webinar content

Part 1:

• Understanding the different types of trusts.
• Exploring how trusts can be capitalised and the consequent impact on the taxation of income and capital gains, as well as the responsible party for tax payment.
• Discussion on donor funding and the calculation of Section 7C tax liability.
• Provisional tax and trusts.

Part 2:

• Differentiating between attribution, vesting, and distribution, and providing guidance on computing each amount.
• The conduit principle.
• The trustees’ responsibilities with regards to vesting / distributing to beneficiaries and the importance of a paper trail.
• Reviewing the tax practitioner’s duty to ensure comprehensive and accurate disclosure for all taxpayers.

Competencies developed in this webinar

After attending this discussion forum webinar, you will be:

• Understanding the different types of trusts
• Understanding the various tax types affecting trusts, along with the related parties such as funders/donors and beneficiaries.
• Understanding why trusts are considered taxpayers of last resort.
• Understanding the conduit principle and how to determine the net taxable income and/or capital gain to be vested/distributed.
• Understanding what taxpayers need to disclose regarding income/capital gain and when.
• Ability to work through calculations to determine the amount of income/capital gain to be attributed, vested, and/or distributed.
• Understanding the trustees’ powers and their responsibilities towards beneficiaries, highlighting the importance of maintaining a paper trail.
• Understanding the tax practitioner’s responsibilities and obligations to ensure full and proper disclosure for respective taxpayers.

Presenter

Cheryl Howard 

Cheryl Howard qualified as a Chartered Accountant at Deloitte. Her professional career remained with Deloitte and Kessel Feinstein (now SNG Grant Thornton) in their respective Private Client tax departments. In 1994 she joined BoE Private Bank, managing the Private Client, Deceased Estates and Fiduciary businesses for the Johannesburg office. 

In 2000 she formed her own multiple family office practice, focusing solely on high-net-worth clients, attending to the administration of their tax, estate planning and fiduciary requirements. 

Cheryl sold her business in 2018 to an international fiduciary company, managing their South African office until the end of 2020. After an almost three-year sabbatical, Cheryl has re-commenced her Family Office Practice with the same professional service offerings as before, with a small team of professionals.

She is also involved in various coaching and training projects within the family office, tax and accounting, and fiduciary sectors. Using her 30 odd years’ experience in high-net-worth client consulting and client relationship management to develop teams and professionals wanting to specialise within family office planning and the high-net-worth client. Sharing practical experiences and family planning stories while giving the professional a practical toolkit to build upon their technical studies. Basically to nurture and refine the consultant to be client centric while providing best advice.

Cheryl has both presented on and written articles for various professional bodies, media and journals on family office planning and its dynamics. She has appeared on TV and radio discussing various aspects of estate, tax, and financial planning.

She has been a past Board member of the Fiduciary Institute of Southern Africa (FISA) and Society of Tax and Estate Practitioners (STEP) as well as a task team member on various SARS / Treasury projects.

CPD

Attending this webinar and the successful completion of the online assessment will secure a certificate of completion for 4 hours of Tax CPD.

Event Investment

Webinar presented over 2 dates - 9 April 2024 (part 1) and 16 April 2024 (part 2): 

Free for Tax Practitioner, Tax Accountant CPD subscribers and Practice Packages. Not a CPD subscriber yet? Click here to register now.

• Regular price: R595.00 (part 1 and 2)
• SAIT member special discounted rate: R475.00 (part 1 and 2)
• Group booking discounts available when you register for a group.

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