Tax implications of loans to trusts
Duration: 0.24 hour
Price: R49.00
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Overview
A trust is a legal relationship created by the founder of the trust. The founder places assets under the control of trustees for the benefit of beneficiaries of the trust or for a specific purpose.
Trusts are established for various reasons. If structured properly, a trust is a very effective tool that can be used for the following reasons:
• Estate planning purposes: When a natural person passes away, estate duty is levied on all property and deemed property owned on the date of death. The estate duty rate is currently 20% on the value of the estate up to R30 million and 25% on the value of the estate in excess of R30 million. In an attempt to reduce estate duty, taxpayers can donate or sell or transfer assets to a trust so that the property is not owned by the deceased on the date of death and estate duty will, therefore, not be due on the assets so transferred.
• Effective management or protection of assets – When assets are donated, sold or transferred to the trust, the trust assets are managed by one or more trustees for the benefit of beneficiaries.
Short course content (self-paced)
- Tax implications of loans to trusts
Competencies developed in this short course (self-paced)
- Prepare Personal Income Tax Returns
- Review Personal Income Tax Returns
- Dispute and Controversy Management Associated with Personal Income Tax
- Provide Tax Advice Associated with Personal Income Tax