Cliffe Dekker Hofmeyr offers a proactive approach to Trust and
Estate administration. First and foremost, we listen to our clients and work
closely with them to develop long-term personal and family goals. Whether the
subject is estate planning or estate administration or trust administration. We
pride ourselves on our creative approach to problem solving. The breadth of our
experience in representing high net-worth individuals and their families, and
to provide clients with practical and sensible approaches to estate
planning.
The Trusts and Estates practice focuses on a broad range of
personal services directed at the firm's clients:
Estate planning
Estate planning not only includes traditional estate planning
techniques, but also incorporates estate and trust administration, all related
aspects such as income tax and capital gains tax. This area emphasizes wealth
enhancement and transfer for high net-worth individuals. We use our legal
experience and problem-solving abilities to design a plan that meets the
objectives of our clients.
Our approach to estate planning includes a comprehensive view
of each individual client's lifetime and testamentary planning needs.
Typically, a client will need goal-oriented analysis, as well as the
traditional estate planning and income-shifting vehicles. Where appropriate, we
recommend and execute the most sophisticated techniques to reduce estate duty
and other related taxes. Our practice is proactive. We recognize that clients
cannot be expected to know the most current estate-planning techniques and we
do not hesitate to present clients with ideas that may be helpful in furthering
their goals.
The focus point of effective estate planning is to make
effective use of the fixed abatement allowed for every person. Hand in hand
with this, one needs to ensure that your will is updated on a regular basis.
This will help to avoid costly and drawn out legal processes - and prevent
possible family-splitting disputes about its validity.
The administration of deceased estates
Estate administration is a principal part of our practice. We
provide a full range of support services to individuals who have been nominated
as Executors in Wills and who seek professional assistance, and also act as
Executors. Our philosophy is that the assets of an estate belong to the
beneficiaries and we aim to comply with all legal requirements and distribute
the assets as promptly as possible. We do everything possible to facilitate the
smooth administration of estates as quickly and efficiently as possible. Our
services include:
- drafting and preparation of the Liquidation and
Distribution Account
- dealing with financial institutions regarding bank accounts
and investments
- realising or transferring share portfolios and unit trust
instruments
- valuation and disposal of assets, including immovable
property
- managing Estate Late investment and current bank
accounts
- calculation of tax liability (income tax, Capital Gains Tax
and Estate Duty)
- preparation and rendition of Estate income tax returns
Administration of Inter Vivos and Testamentary trusts
In addition to estate administration, we administer Inter
Vivos and Testamentary trusts for our clients, offering a full range of trust
administration including accounting and tax compliance services.
As an accommodation to clients, certain partners of the firm
will act as personal representatives trustees. These partners offer years of
experience and objectivity to families in meeting their needs and acting as an
independent party to a trust - which is now a requirement of the Master of the
High Court.
In administering Trust we attend to the following:
- making payments to and on behalf of beneficiaries
- provisional and annual tax payments
- preparation and submission of annual income tax
returns
- administration of trust assets
- bi-annual financial statements
Formation and registration of Inter Vivos trusts, including
continuous advice to trustees in trust administration
Trusts can be valuable tools in the hands of estate planners
and can continue over a number of generations. They have the advantage of
synchronising assets and providing a means of administering
them.
Inter Vivos Trust
An Inter-vivos Trust is a vehicle set up in your lifetime to
achieve an estate duty advantage. Once the Trust is set up, you can divest
assets into the Trust in various ways, effectively creating a loan account - a
debt or asset, which is due back to you from the Trust.
On death, a portfolio of shares may be worth five times what
you paid for it but the asset you own for estate duty purposes is the debt
only, owed by the Trust to you.
Testamentary Trust
A Testamentary Trust is created in terms of a will and could
achieve the same advantages of pooling the administration of your assets and
looking after your beneficiaries - but you wouldn't achieve the estate duty
advantage referred to above.
Formation and registration of Charitable Trust Deeds
We offer a full range of service including:
- the drafting of the charitable trust deed in accordance
with the clients specific goals/objectives of establishment
- application to the Master's Office for registration of the
trust
- application to SARS tax-exemption unit for Public Benefit
Organisation status
- where applicable or necessary, application for registration
as a non-profit Organisation with the NPO Directorate
Curator bonae or agent for curator bonae of persons
incapable of managing their own affairs which includes the management of
individuals' personal affairs.
