FREQUENTLY ASKED QUESTIONS
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How do I put my house in a trust in South Africa?
Transferring an existing house into a trust is a formal property transfer and should be handled by a conveyancing attorney with tax advice. The trust should first be properly established, its trustees must hold valid Letters of Authority from the…
What is the opposite of an inter vivos trust?
The direct counterpart to an inter vivos trust is a testamentary trust. An inter vivos trust is created during the founder’s lifetime, while a testamentary trust is created under a person’s will and takes effect after that person dies. A…
Where would an estate valued under R250,000 be reported?
An estate valued at R250,000 or less falls within the current monetary threshold for the simplified section 18(3) procedure, but the reporting location is still determined by the Master’s jurisdiction and current service point rules. The estate should be reported…
What is the best trust to put your house in?
There is no single trust that is automatically “best” for holding a house. Where a South African family deliberately chooses trust ownership, a discretionary inter vivos trust is a commonly used structure because it can provide continuity and flexibility in…
How to change ownership of a house after death?
Immovable property belonging to a deceased estate must be dealt with through the estate administration process and transferred through the Deeds Office by a conveyancer. If the property is awarded to an heir in the Liquidation and Distribution account, section…
What assets can a family trust hold?
A family trust can hold a wide range of assets, subject to the trust deed and any law that applies to the particular asset. Common examples include immovable property, listed and unlisted shares, unit trusts and exchange-traded funds, cash and…
Can a deceased estate borrow money?
A deceased estate is not a juristic person that independently enters into a loan in the same way as a company. Any financing must be arranged by the executor in the executor’s representative capacity and within the executor’s legal powers.…
What if there is not enough money in the estate?
An estate can be solvent but short of cash, or it can be genuinely insolvent. A solvent but illiquid estate has enough overall value to pay its debts but not enough cash. The executor may need to realise assets to…
What are the requirements of a valid will?
In South Africa, the main formal requirements are set out in section 2 of the Wills Act 7 of 1953. A person must be at least 16 years old to make a will and must be mentally capable of appreciating…
What happens if the value of the deceased estate is below R250,000?
Where the gross value of a deceased estate does not exceed R250,000, the Master may apply the simplified procedure in section 18(3) of the Administration of Estates Act. Instead of appointing an executor and issuing Letters of Executorship, the Master…