What To Do After Your Trusts Have Been Registered скачать в хорошем качестве

What To Do After Your Trusts Have Been Registered

Your trusts are registered… now what? Important steps to take once registration is done If you want to do something right in life, there is usually a process to follow. The same goes for property investment in the proper structure. Registering your trusts is only the first step in getting the right investment structure in place. Often, my clients get so excited that their trusts are registered that they forget the very important steps that follow once registration is complete. With this easy guide, you can follow these steps after your trusts have been registered, and you’ll be good to go! As soon as the Holdings Trust is registered… It is critically important that you transfer the shares of your companies to the Holdings Trust as soon as it’s registered. This means that a share certificate and share transfer certificate need to be issued. If it is a newly registered company or a dormant company, this is an easy process. But if it is an existing company that has a value, then a valuation needs to be done by the company’s accountants and there may be capital gains tax implications. Another very important step that is required is to open a bank account. Even though the bank account of the trusts will seldom be used, it is still compulsory to open a bank account as this is a requirement to obtain a tax number. Remember to pay the initial donation (usually R100 or R500) as per the trust deed into the trust’s bank account, since the trust deed stipulates that the founder will deposit the initial donation into the trust’s bank account. Once the bank account is opened… The next step is to obtain a tax number for the trust. Please take note that this is a requirement by law and that fines and penalties may apply if you do not obtain a tax number for your trust. It is also difficult to complete all the tax requirements of a company with the shares held in a Holdings Trust if the Holdings Trust is not registered for tax. Moving day… Now, you can start moving all your personal assets to the Family Trust. The type of assets you should keep in the Family Trust (once they are paid off) include a primary residence, holiday home, vehicles, paper assets and investments, life policies, furniture, appliances, electronic goods, art, jewellery, etc. You can sell existing paid-off assets to the Family Trust through a contract of sale between you and the Family Trust. Keep in mind that a list of all your existing paid-off assets with values is required to do this. You can have a look at the attached spreadsheet as an example. The next step is to move existing properties in your name to the Property Company, the shares of which are held by the Holdings Trust. This can usually be done with a sale of a property. The company is the buyer, you are the seller, and the company is buying the property from you. The financing will be done in the name of the company and as director, you will usually sign surety. This enables you to get the asset (investment property) and the debt (mortgage) out of your name to make capital available. (The property is now financed at market value and the difference between that value and the outstanding bond amount that was in your name now gets paid out to you.) How Prosperity Enterprises helps you We are here to help you from trust registration to the ongoing management of your portfolio. Our conveyancing attorneys assist with the offer to purchase and our bond originator can assist with obtaining financing on the property. Once financing is approved, our conveyancing attorneys and bond registration attorneys can assist with the process of the properties being transferred to the Property Company and the bond being registered. The amount you receive from the sale of the property can be paid from your bank account to the bank account of the Family Trust. A certain amount (up to the exemption amount of R100,000 per person) will be allocated as a donation and the rest will be allocated as a loan. Annually, we can donate against that loan to work it off. The Family Trust can then lend the full amount instantly to the Holdings Trust (i.e., the monies are paid from the Family Trust’s bank account to the Holdings Trust’s bank account) and then the Holdings Trust will lend to the Property Company (i.e., the monies are paid from the Holdings Trust’s bank account to the Property Company’s bank account). We also help you set up trust resolutions to record these decisions. Once the amount reflects in the Property Company’s bank account, it can be moved and parked in the access bond to reduce your interest and reduce your monthly bond payment on your new bond. And there you have it! Once this is done, you will have all the necessary basics in place after your trusts have been registered. Now, all that’s left to do is enjoy the financial freedom that comes from having your investments in the proper structure.