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Is a Trust Still a Valid Wealth Preserver?

About 50% of high wealth individuals still favour trusts when it comes to wealth preservation.




Although trusts find their origins in mediaeval times and may be perceived to be outdated, the benefits of having a trust still significantly outweigh arguments against having one.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.

Transferring wealth

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.


Personal Finance

10 Tips To Become A Millionaire This Year

Becoming a millionaire requires changing your mindset and implementing some changes.

Murray Newlands



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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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Personal Finance

If You Think These 5 Things, You’ll Never Get Rich By The Time You’re 30

Five common mistakes entrepreneurs make when starting a business and how to correct them.



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Last week, I had lunch with a millennial who wanted some advice about a business he’s starting. After the usual small talk, we got down to discussing his business plan. Within a short time, it was clear that his business idea was great, his plan for executing was fairly solid and he had gathered together a strong team to help him make it happen.

So far, so good. But, to be frank, this guy has no chance of being successful with his current mentality. What it takes to be rich (or successful in any measure) has a lot more to do with your mindset than your ideas and plans.

From the time we started in business at the ripe ages of six and seven, our Grandpa Joe taught my brother Matthew and me many lessons about the details of running a profitable business. Over the years, we learned about how to create a business plan; how to market our products and services; and how to take care of customers, vendors and employees. All this knowledge has been invaluable to us in creating and running successful businesses. But, what our grandfather taught us about attitude and mindset trumps all other lessons.

Without calling out the specific individual I spoke with recently, below are five “hypothetical” attitudes that will get you nowhere in your journey to success – and the attitudes that should replace them.

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Personal Finance

5 Habits That Lead To Millionaire Business Success

You need the right habits if you’re going to succeed.

Timothy Sykes




What do all millionaire businesspeople have in common? Well, a lot of things.

I found from a recent study that 80 percent of all millionaires still go to work every single day. They’re working people just like me. But, they have to keep themselves in work or it all grinds to a halt. So what are the habits you need to make your business a success?

1. Patience

Nothing is ever going to come easy. You can look at the likes of Steve Jobs and Bill Gates, as well as the other usual suspects, to realize that success didn’t come with their first venture. Many of them failed time and time again. It took patience for them to become successful.

I read an article recently about 36-year-old teacher Andrew Hallam who became a self-made millionaire on a teaching salary. But, in his spare time he invested smart and lived frugally.

It proves you don’t have to inherit lots of money or become an instant success to make a millionaire business.

Related: 4 Ways To Become A Millionaire Even When You Start With Little

2. Dedication

You have to be dedicated to your craft if you’re going to become successful. Going back to Bill Gates again, he started his business in the back of his garage. Now that’s dedication.

It’s what I tell all my students. If they’re not dedicated to this, then they should leave. You need to be able to push through the barren periods if you’re going to reach the oasis of success.

3. Ambition and big dreams

Have you ever heard the quote, “Shoot for the moon. Even if you miss you’ll land among the stars”?

I take that to heart because even if you aim to become a billionaire and miss you still might be a millionaire many times over. Take the Wright Brothers as an example. Not content with creating a successful glider in 1902 they went on to create the world’s first airplane in 1903, making four brief flights in Kitty Hawk. It demonstrates the importance of dreaming big because you never know what you might achieve.

Related: 12 Millionaire Habits To Start Making Serious Money Soon And Build Wealth In A Hurry

4. Learn from mistakes

Every good businessperson will mess something up. It’s inevitable. What’s important is how you learn from your mistakes over time. Do you adapt after making your mistakes?

Millionaire businesspeople always set some time aside to reflect. Then they create a plan of action for ensuring that it doesn’t happen again. Most failed businesspeople put it down to “bad luck.”

5. Focus on niches

This important! Try to take over a whole industry at once and you’ll inevitably get swallowed up by the competition. Start small and control your own niche before moving into another niche. When you master your small area, you can push on and expand.

Related: 21 Choices Millionaires Make That You Aren’t Making But Should Be

You’ll be amazed at how much easier it is to expand after you master your own niche/audience first.

Do you have what it takes? That’s the question I always ask novice businesspeople. You need a plan and you need the right habits if you’re going to succeed.

This article was originally posted here on

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