Protect Your Wealth with Trust Structuring

Besides peace of mind and financial security, correct trust structuring provides you with the following benefits:

Start taking advantage of the benefits of correct structuring today and watch your property portfolio soar!

Trust Registration

Trust Administration

Company Registration

What is a trust?

According to the Trust Property Control Act 57 of 1988, a trust is “A structure into which property is transferred, which is then administered by trustees, on behalf of beneficiaries, in accordance with the trust instrument, which is the trust deed.” A trust is a legal arrangement where control over property is transferred to a person or organisation (the trustee) for the benefit of someone else (the beneficiary).

What is the purpose of a trust and its benefits?

A trust makes provision for:

1. Asset protection
2. It reduces the costs on death and is thus good for estate planning
3. It increases financing capacity as you can build a bigger portfolio when you purchase properties in an entity rather than in your own name, and
4. It is great for tax benefits as the conduit principle enables you to pay less tax in a trust than in any other structure.

Should I buy property in my own name, a property company, or a trust?

If you want to build up a property investment portfolio over your lifetime (which is the best way to build wealth), there is no other option than having a proper investment structure. When you acquire investment properties, it is imperative to acquire them in a company with a Holdings Trust holding the company’s shares.

Is it necessary to have a Holdings Trust and a Family Trust?

Trusts are critical to building and protecting your wealth if you want to create financial freedom. Still, few people understand the benefits of using trusts or how to use them correctly. At Prosperity Enterprises, we believe in the power of trusts and are here to help you navigate the do’s and don’ts of property investment using trusts.

If you want to build a prosperous life, you need at least two trusts:

1. A FAMILY TRUST to preserve your wealth. This is a low- or no-risk trust primarily used to protect your assets.
2. A separate HOLDINGS TRUST that holds the shares in the company or companies that own your properties. This is where you’ll build and grow your wealth.

Should I move properties I purchased in my own name to an entity?

It is so important to have an entity own your properties and not own them in your personal capacity. You don’t want any assets in your name. You also don’t want any large amounts of debt in your name.

But what do you do when you already own a property or multiple properties in your name? Should you restructure your property investment portfolio or not?

The short answer is yes.

While restructuring can become expensive, it is necessary because the longer you delay, the bigger your problem will become and the higher your costs.

What is the purpose of the Family Trust?

You need a Family Trust where you can preserve wealth. This is a low- or no-risk trust primarily used to protect your assets. The two main purposes of the family trust are to acquire paid-off personal assets over your lifetime and to have funds flow through to your property structure.

Ideally, you want to donate to your Family Trust, use those annual exemptions, and then lend to your property structure from your Family Trust. There are THREE main reasons why the Family Trust is so important to your property investment structure: asset protection, tax benefits, and estate planning.

How can trust structuring benefit me and my family?

Trust structuring can provide numerous benefits, including asset protection, estate planning, wealth preservation, and tax optimization. By creating trusts tailored to your specific needs and goals, you can safeguard your assets, minimize taxes, protect your legacy, and ensure your beneficiaries are taken care of according to your wishes.