Companies and Trusts are crucial structures for property investors, protecting their property assets. Setting up a family trust in South Africa and placing your properties in a company both have perks. When you plan ahead for when you are no longer around, setting up a family trust and company means your loved ones will be financially protected.
With February being the month we celebrate love, looking at your estate planning and how you protect and help your loved ones beyond your lifetime seems fitting.
“February brings roses and romance, but as the childhood song goes, after love and marriage, we get that baby carriage. Then love also looks like making sure your children are cared for if you’re not there to do it yourself. As someone who’s built a property portfolio and raised a family, I can tell you: estate planning is one of the most loving things you’ll ever do.”– Jacques Fouché, IGrow CEO & Founder
Jolandie Vermeulen, Head of IGrow Trusts, shares insights that every property investor and parent needs to hear.
Love, leaving a legacy, and looking after what matters most
Jolandie Vermeulen, Head of IGrow Trusts, shares her insights on the important role her team fulfils for our property investors.
“February reminds us of love, and not just the romantic kind, but the deep, protective love we have for our children. As a parent to a 14-year-old boy and an 11-year-old girl, I often think about what would happen if I were no longer here. Not in a fearful way, but in a responsible one. My greatest wish is simple: that they are cared for, protected, and financially secure, no matter what.” – Jolandie Vermeulen, Head of IGrow Trusts
According to Jolandie, “Many people don’t realise that minors cannot inherit directly. If a child under 18 receives an inheritance without proper planning, the money may be placed under the control of the Guardian’s Fund or managed by someone the family did not choose.”
This can potentially cause delays and uncertainty at a time when children need stability and reassurance the most. Having a family trust in South Africa solves this problem by holding and managing assets on behalf of minor children until they are old enough. This ensures funds are used for essentials like their education, healthcare, and daily needs. Things will continue to run smoothly in your children’s lives (financially), exactly as you intended, when you are gone.
The benefits of a family trust or company set-up
A trust can also serve a dual purpose, specifically for families that own investment properties. When properties are held in a company, the company’s shares can be placed in a trust. This means the property portfolio won’t be included in your personal estate when you pass away.
At the end of the day, this will help maintain continuity, reduce estate administration costs, and avoid unnecessary delays or forced sales. Your investments in your property portfolio remain profitable, while your loved ones are protected.
“A trust, together with a valid Last Will and Testament, is one of the greatest acts of love you can give your family. Your will records your wishes and appoints guardians for your children, while the trust ensures both their financial future and your assets are managed responsibly.” – Jolandie Vermeulen, Head of IGrow Trusts
View our blog post that explores the process and benefits of setting up a trust and company hybrid structure for your property assets.
Conclusion
Having a trust set up is an act of lasting love. They involve you having planned with intention and having placed protection over what you’ve built. It also ensures you can leave a legacy of care that lasts beyond your lifetime. The benefits of placing your property assets in a family trust or company with IGrow Trusts’ assistance are evident.
Speak to an IGrow Trusts specialist today for all your estate planning needs. Let’s see how we can help you structure your property investments and other assets. This is so you can reduce your tax deductions and secure your loved ones’ inheritance. With 20 years of experience in the property investment world, our team knows what property investors need.
