PROF WALTER GEACH
HE WROTE THE BOOK ON TRUSTS;
NOW HE’S AVAILABLE TO MANAGE YOURS.
A company built around industry-defining experience and driven by the energy of youth.
TRUST SERVICES
The most important investment in a trust is the very first one: to make certain that it is properly formed, properly managed and regularly professionally reviewed.
TRUST FORMATION
One of the great advantages of a trust is its flexibility and its relative lack of legislative requirements in its creation, use and operation. These considerable advantages can lead to a view that one can “do what you like” in forming and using a trust., which often results in many people taking short-cuts when forming and using a trust.
To mitigate abuse, trusts are increasingly coming under the scrutiny of courts in litigation, and by the tax and other authorities.
Under close scrutiny, a trust can be exposed as, literally, nothing at all. Ignoring legal requirements, such as the Trust Property Control Act, can easily result in the “trust” being totally disregarded in a court of law or by the authorities. Assets which were supposed to be protected in the trust become regarded as the belonging to those involved, whether founder, trustee or beneficiary.
Because of the ignorance of the law of trusts, many people may have formed what they believe is a trust, whereas in reality, and in law, a valid trust has not been created at all.
Under close
scrutiny,
a trust can
be exposed as,
literally,
nothing at all…
TRUST MANAGEMENT / ADMINISTRATION
The Management and administration of a trust not only calls for the required level of experience and technical skills, it also assumes a high degree of care, attention to detail and on-going diligence. One is placed in a position of managing often complex financial affairs over an extended period and taking decisions which can affect the lives of many others, even for generations to come. It is a highly responsible and demanding appointment.
Bookkeeping and regulatory requirements such as the recording of events should accurately reflect on-going reality of the trust and its assets. The appointment of an accounting officer is often decided on to place this aspect of trust management on a firm and transparent footing. A formal annual audit is not normally required but a clear, undisputed picture of the trust’s financial position is crucial.
TRUST REVIEW
A trust is always formed with an intention or set of intentions and is based on various legislation that continuously evolves over time. In many cases, what a person believes is a properly formed trust, is in fact a partnership or is actually nothing as all. There have been a number of cases where the courts have held that the so-called “trust” is simply the alter ego of the person who caused it to be formed. As a result, courts have, for example, ordered the so-called trust assets to be divided and redistributed as part of a divorce settlement, or otherwise to be made available as settlement for the personal creditors of the founder.
Whatever the intention or set of intentions of a trust, it is vital that it is carefully reviewed on a consistent basis, to ensure that its management is properly aligned and that the trust is compliant with all relevant legislation and legal requirements.
Ignoring legal requirements
can easily result
in a “trust”
being totally
disregarded in
a court of law…
TRUST ADVANTAGES
The use of trusts has many advantages. The fact that trusts are relatively unregulated (compared with companies and close corporations) only add to their appeal.
A trust can effectively be used to:
- Plan for estate purposes (succession)
- Separate benefit from control
- Protect assets from a beneficiary’s personal creditors and misfortunes (such as insolvency or divorce)
- Conduct business activities, instead of the use of a company, close corporation or partnership
It is vital to be aware of the requirements for the formation and the operation and use of a trust and to have a complete understanding of the laws that apply to trusts, trustees and beneficiaries. This is where SA Prime Trustees is of professional value to clients.
CORPORATE CASH
CASH MANAGEMENT TAILORED TO YOUR NEEDS
SA Prime Trustees offers you a cash management service that combines complete flexibility with the most innovative facilities available at a very low cost.
These facilities are ideal for both shorter term “parking of money” and also for longer term holding of cash as a defensive investment position.
Cash investment for our clients is consolidated with Investec and their 2 leading cash investment vehicles: Corporate Cash Manager Call Account and Corporate Cash Manager Money Fund Account.
The Investec Corporate Cash Manager Platform facilitates transactions and saving in a completely secured online environment. SA Prime Trustees acts as an intermediary and all invested amounts are held and managed by Investec.
THE 2 FACILITIES ARE SUMMARISED:
CORPORATE CASH MANAGER CALL ACCOUNT
A cash management solution with high prime-linked interest rates combines with the convenience of a current account
- No minimum investment
- Immediate access to your funds at any time
- Interest on account calculated and accrued daily
- Make 3 rd party payments directly from your account for no additional cost
- Administration Fee of between 0.5% and 2% depending on account balance and account activity
- Interest rates linked to SA Prime interest rate
CORPORATE CASH MANAGER MONEY FUND ACCOUNT
Get the best rate on the market, date-to-day, without ever having to switch funds. No bank charges, administration fees capped at 0.5%
- Minimum investment of R10,000
- Immediate access to your funds at any time
- Interest on account calculated and accrued daily
- Make 3 rd party payments directly from your account for no additional cost (limited to 3 per month)
- Fixed administration fee of 0.5%. No other fees are charged
- Interest rates linked to average of top 4 performing money market fund published rates
Other accounts including fixed deposits, notice deposits and foreign currency notice accounts are also available on request.
ESTATE PLANNING
Planning how your estate is executed is a set of intentions logically thought out and clearly drafted. The more carefully this is done, the less likely that your loved ones will encounter difficulties in the execution of your estate.
In the planning, there are a few main considerations to take care of such as
- Immediate liquidity needs
- The most efficient ways of minimising duties payable
- The distribution and protection of inheritances
Estate planning is more than the writing of a will. Unquestionably, this is a central part of the process but aspects such as marriage contracts, tax implications such as income taxes and Capital Gains Taxes owing are aspects that require careful consideration and specialist input.
The planning of an estate is a dynamic process in that it needs to keep pace with the cycles and changes of life. It is essential to review your plan annually to make sure it reflects current thinking and, possibly, changed circumstances.
ESTATE PLANNING AND TRUSTS
Trusts can play a vital role in estate planning
- Testamentary trust: this is formed on death and works to protect the financial interests of minors and other dependents
- Inter vivos trust: formed during one’s lifetime, designed to provide on-going protection of wealth
- Settlement trust –formed to accept proceeds from eg. policies and divorce settlements
SA Prime Trustees are in a unique position to assist you in planning your estate and in the on-going review to ensure clarity and alignment.
Our mix of tax and trust experience will ensure the peace of mind in knowing that you simply cannot do better in covering every base, in proactively keep compliance in mind and applying the intelligent use of structures to exactly execute your intentions.
WHO WE ARE
SA Prime Trustees comprises a compact team that combines a broad spectrum of experience with the vitality of youth. The team has both considerable specialist skills depth and the sort of generalist overview that is invaluable in assisting clients with “bigger picture” thinking and solutions. Led by Professor Walter Geach, your trust management or estate planning could not be in safer, more astute hands.
WALTER GEACH | CHAIRMAN
Prof Walter Geach is uniquely qualified and experienced in the fields of trusts, taxation and estate planning. He is a chartered accountant CA (SA), an admitted advocate of the High Court and former Head of the Department of Accounting at UWC. Among his many other academic achievements, he has also authored/co-authored over 15 published books which have become go-to reference works in the industry. He is a director (non-exec) on several boards, including Grand Parade Investment Ltd.
JULIAN NADERER | TRUST MANAGER
Julian began his degree at UCT, majoring in Accounting & Finance, before suspending to take up the opportunity to work in Europe and the US. In 2015 he returned to SA to complete his articles at Nolands, while continuing to study towards his CA qualification. Julian completed his articles in 2020 and joined the SA Prime team shortly thereafter. Julian takes a keen interest in business & culture, speaks four languages and has lived / worked across seven countries.
STUART NOLAND | DIRECTOR
Stuart specialises in corporate finance and management consulting with specific focus on valuations, mergers and acquisitions and business performance optimisation.
He was part of KPMG’s Financial Engineering Group and has also worked for the company as a practice manager in London. On his return he spent 3 years at Bain Africa as a strategy consultant.
He moved to Nolands in 2019. Stuart is a Chartered Accountant and holds a Masters in Finance (UCT) and a MBA from Oxford.
GRAEME SAGGERS | DIRECTOR
Graeme is a Chartered Accountant and also holds a Masters degree in Tax (UCT) which he earned with double distinctions. He has since specialised in tax consulting with a specific interest in advising on estate planning matters, both in South Africa and in cross-border scenarios.
He has presented and published research on various tax topics both locally and internationally and maintains a keen academic interest as an external examiner and guest lecturer at the University of Cape Town.
ROY WAYNE | COMPLIANCE OFFICER
Roy is the ex-group Audit Manager of the Urban Foundation where he gained invaluable experience in the areas of audit/compliance alongside many of the South African leaders of industry. Roy further worked with an International Trust Management Company which allowed him to specialise in trust administration and portfolio management, in a highly regulated and controlled environment.
Roy is a proud born-and-bred Capetonian, living in the shadows of the iconic Table Mountain and enjoying the pleasures of hiking, sailing and swimming.
CONTACT US
For all enquiries on any aspect of our services, Trusts, Estates, or Cash Investment, please contact Julian Naderer at juliann@saprime.co.za.
Alternatively use the messaging board below and we will get back to you.