Although trusts find their origins in mediaeval times and may be perceived to be outdated, the benefits of having a trust still significantly outweigh arguments against having one.
There are thousands of registered trusts and it’s estimated that about 50% of high wealth individuals still favour this vehicle when it comes to wealth preservation.
Despite legislative changes as tax on trusts evolves, the ability of trusts to protect assets from creditors and predators over generations still make them an
essential building block for wealth management and an important part of good financial planning. And despite the suspicion with which trusts are sometimes viewed by treasury as a means of tax avoidance, they remain a frequent topic of discussion between the wealthy and their advisors.
When a trust is used properly, as a legal vehicle that houses individual or family assets, it’s important that it’s created to suit the particular needs of a wealthy individual. The recent changes in capital gains and dividends tax should not have a major impact on the usefulness of trusts.
A trust provides an ideal, orderly long-term structure to hand down assets over generations whilst also providing savings in estate duty which is the tax payable on one’s total assets at death.
In essence, once assets have been transferred into a trust, any further capital appreciation occurs outside the person’s estate, meaning the assets housed in the trust can grow indefinitely, irrespective of a death.
It is always advisable to transfer growth assets to the trust either by selling them to the trust or by means of a donation.
The asset-value threshold at which estate duty becomes payable is R35 million, but for spouses this is aggregated to R7 million, giving families more reason to save and pass on their wealth to the next generation.
Protecting your assets
Meanwhile, trusts can also act as convenient recipients of donations. As a result, individuals can give up to R100 000 annually to anyone — or any trust — they’d like, without the donor having to pay tax. A gift of over R100 000 is still taxable at a rate of 20% on the amount above R100 000.
Another significant benefit of an inter vivos trust to be considered, especially by those involved in business ventures, is that the trust will afford them protection should they be sued for whatever reason, as assets of the trust would be excluded.
Weighing against these positive features of a trust is the drawback of the loss of full control of one’s assets.
Once an inter vivos trust is created to hold certain assets and ownership of these assets has passed to the trustees, all the rights associated with ownership pass to the trustees. This is the principal argument against this type of trust.
Choosing the correct trust company to handle your affairs and those of your beneficiaries’ is of vital importance. You must select a trust company that has a solid track record.
6 Ways To Develop A Millionaire Mindset
Chasing money has remarkably little to do with getting rich.
If you truly want to have a million dollars, you must first be and think like a millionaire. By doing so, you will attract the necessary resources to you.
So, you want to become a millionaire entrepreneur? You’re not alone. Many dream of leaving their job and becoming their own boss, enjoying the various millionaire lifestyles we watch on TV. But there’s a difference between those who dream of becoming millionaires and those who do. And it begins and ends with mindset. If you don’t develop that mindset, you will continue to spin your wheels, working just as hard, but never going anywhere.
Developing a millionaire mindset requires you to stretch your thinking. Start by developing the following six attributes.
4 Ways To Become A Millionaire Even When You Start With Little
It costs nothing to take advantage of the limitless opportunities online.
The hardest part of becoming successful is getting started to begin with. But despite the challenges ahead of you, there’s a way to become a millionaire when starting with little. I’m going to show you four reasons why you can become a millionaire with just a small investment.
1. First focus on learning, not big gain
Education is your greatest weapon. Focus on learning in the beginning. Don’t make the mistake of focusing on making huge gains in the beginning. Learn everything you can because this is how you build the foundations for long-term gains.
They say that if a millionaire goes bankrupt they’ll nearly always be able to get it back. And that’s because they might have lost their money, but they have the knowledge of how to get back to where they need to be.
2. You can learn loads about any topic online
I’m grateful for the internet. It’s the single biggest library in the world. You’re reading this article right now and you’re acquiring knowledge you wouldn’t have been able to acquire 40 years ago.
Use the internet to its fullest extent, whether that’s through reading books, browsing articles or watching video tutorials. Set some time aside every day to learn something online. It could be a video series or a favorite blog.
When you get into the habit of learning regularly you’ll find that you advance much faster.
3. Focus on the niche you love
These days you can learn about anything and target the niche you’re passionate about.
This is what I was able to do with penny stocks. I found a gap in the market and provided knowledge to people who wouldn’t have otherwise being able to access this sort of information.
You can do that with absolutely any niche. When you find a niche you’re passionate about and you use the reach of the Internet you start to make huge gains.
4. Prove your expertise by creating free content
Your reputation as an authority is the new business card. There’s a reason I created a penny stock guide and made it free for all. You may have already seen ads for it on social media. The way to succeed with little is to create a reputation through your content.
It’s the gateway to success because through free content you start to build relationships with others who value your work. And from there everyone gets richer.
You can do lots with a little
The days when you needed a huge investment to become successful are long gone. These days you can do so much with just a little. Find what you love, advance your knowledge in that area, and create a product that fulfills a need. Finally, work on building up relationships through portraying yourself as an authority on your subject.
Combine everything together and you can accomplish anything.
This article was originally posted here on Entrepreneur.com.
10 Tips To Become A Millionaire This Year
Becoming a millionaire requires changing your mindset and implementing some changes.
Becoming a millionaire may seem out of your reach, but it’s possible with the right attitude and guidance. The fact of the matter is your income can only grow as quickly as you do, so you need to change your mindset to achieve your goal of becoming a millionaire.
Once you have a millionaire mind, you can’t lose it, no matter what financial or business mistakes you make along the way. To get yourself there, you’re going to need some structure. To help you, I’ve outlined the top ten tips you should follow to become a millionaire this year.
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