Get organised by putting these essential documents in place
If you can believe it, we are already at the end of January. With all the beginning-of-year struggles and excitement, there is something to keep in mind – your New Year’s resolutions. It is never too late to become better organised. One of the best ways to become better organised is to put life’s most essential documents in place. No one really wants to think about serious illness or death. While you may not want to think about these things at the start of a new year, going without planning can be problematic on many levels. If you want to make sure that your loved ones and your assets are secure, it is time to get better prepared by having those essential documents in place. Consider having these three documents prepared and signed: Last Will and Testament You really meant to get around to updating your Will after your wedding… the birth of your child… your divorce… your big move…but you just haven’t found the time. The right time is now! A Will is the only method by which you can ensure that your assets, including items of monetary and/or sentimental value, are properly protected and distributed in accordance with your wishes. A Will can have a great influence on the well-being of the persons that you care about, and when you draft a Will you ensure that they will be looked after when you are no longer there for them. Ensure that your Last Will and Testament leaves a legacy of love and not a deluge of destruction. Your Will should be a practical document in simple language which records your intentions and is easy to understand and execute. Living Will A Living Will is a document regarding healthcare at the end of your life. It states that any treatment that would otherwise lengthen your life should be withheld in specific circumstances, such as being in a permanent vegetative state, irreversibly unconscious or terminally ill. Through a Living Will, you express the desire to die a natural death, free from having your life extended artificially using life support in any form such as a life support machine, tube feeding, or medication. In other words, by way of a Living Will, you tell your family and your doctor that you do not consent to being kept alive artificially. A Living Will provides peace of mind as it enables you to express your choice of medical care should you be unable to communicate. A Living Will can also assist in settling disagreements amongst family members and medical professionals regarding appropriate treatment. Power of Attorney Power of attorney is one of those phrases that you hear quite often, and there can be some very real implications for a person that signs it over. Understanding exactly what a Power of Attorney is, and how it can affect you after certain life events, is very important. A Power of attorney is essentially a notice by way of which one person, known as a Principal, appoints and authorises another person, known as an Agent, to act on their behalf and make decisions for them. This can be for specific matters (Special Power of Attorney) or for all matters (General Power of Attorney). A Power of Attorney is a valuable tool when you are absent or become too frail to physically sign documents. These are a few suggestions to help you get administratively organised. It is all about peace of mind and knowing that your loved ones are cared for and aren’t put in a position to make difficult decisions. Having these documents in place might be one of the final acts of love you show your family. This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
How do I register a trust?
A trust is an agreement between the person who owns the assets and the appointed trustees. A trust can be a good way to preserve your wealth for your family and children. A well-managed trust will make sure that anyone who is a beneficiary of the trust benefits from it. The trustees have the important job to administer the trust and its assets objectively with the best interests of the beneficiaries in mind. Trusts and their administration fall under the Trust Property Control Act no 57/1988. What types of trusts are there? It’s important to note that there are two types of trusts. An inter vivos trust and a testamentary trust. A testamentary trust is one that’s formed from the will of a deceased person. In the case of a testamentary trust the deceased’s last will serves as the trust document. An inter vivos trust is created between living persons, and will form the basis of this article. Inter vivos trusts can limit estate duty and preserve your assets and wealth for your descendants. Certain financial institutions assist in setting up a trust and can act as trustees. Registering an inter vivos trust To register an inter vivos trust with the Master of the High Court, the following documents must be lodged. Original trust deed or notarial certified copy thereof. Proof of payment of R100 fee, for registration of a new Trust. Completed Acceptance of Trusteeship (J417) and Acceptance of Auditor Application (J405) forms. Bond of security by the trustees – form J344 (if required by the Master) * There are no costs involved in amending an existing Trust. These documents are also required for the Master to issue the trustees with letters of authority for administering the trust. A trustee may not proceed to administer the trust without the written authority of the Master. If the trust’s assets or majority of its assets are located in a particular area, then the inter vivos trust has to be registered with the Master who has jurisdiction in that area. De-registering of a trust The Master can de-register the trust only once it has been terminated. The common law makes provision for the termination of a trust as the Trust Property Control Act makes no such provision. The following circumstances can be grounds for a trust to be terminated: by statute fulfilment of the object of the trust failure of the beneficiary renunciation or repudiation by the beneficiary destruction of the trust property the operation of a resolutive condition You will still need the original letter of authority, bank statements reflecting a nil balance on the final statement and proof that the beneficiaries have received their benefits. Administering the trust Trustees are required to comply with the Trust Property Control Act, which determines how trusts should be administered and the role of the trustees. If trustees fail to comply with the Act they may face criminal prosecution. The trustees have to always act with the best interests of the beneficiaries in mind. Some legal requirements of trustees include not being able to make secret profits, taking care and being objective when administering trust assets and always acting in good faith. Reference: Justice.gov.za. The Department of Justice and Constitutional Development, Administration of Trusts. [online] Available at: http://www.justice.gov.za/master/trust/ [Accessed 19/05/2016]. Sanlam.co.za. Sanlam Trusts. [online] Available at: https://www.sanlam.co.za/personal/financialplanning/willstrustsestates/Pages/trusts/ [Accessed 20/05/2016]. This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)