Overview

When it came to the taxation of trusts, there were three potential taxpayers. This was determined by:

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

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

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

These factors had determined who was taxed on what and when. The three potential taxpayers were 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 had paid what, when, and why affected the taxation of the taxpayer, the estate planning for the donor/settlor, funder, and beneficiary, as well as what had been disclosed in the Annual Financial Statements of the Trust.

Webinar Content

Part 1:

• Understood the different types of trusts.
• Explored how trusts could be capitalized and the impact on taxation of income and capital gains, and identified the responsible party for tax payment.
• Discussed donor funding and the calculation of Section 7C tax liability.
• Covered provisional tax and trusts.

Part 2:

• Differentiated between attribution, vesting, and distribution, and provided guidance on computing each amount.
• Explained the conduit principle.
• Covered trustees’ responsibilities regarding vesting/distributing to beneficiaries and the importance of a paper trail.
• Reviewed the tax practitioner’s duty to ensure comprehensive and accurate disclosure for all taxpayers.

Competencies developed in this webinar

After attending this webinar, participants:

• Understood the different types of trusts.
• Understood various tax types affecting trusts and the related parties such as funders/donors and beneficiaries.
• Gained insight into why trusts were considered taxpayers of last resort.
• Learned about the conduit principle and how to determine the net taxable income and/or capital gain to be vested/distributed.
• Gained clarity on what taxpayers needed to disclose regarding income/capital gain and when.
• Developed the ability to work through calculations to determine the amount of income/capital gain to be attributed, vested, and/or distributed.
• Understood trustees’ powers and responsibilities towards beneficiaries, highlighting the importance of maintaining a paper trail.
• Became aware of 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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