What is a will trust and how does it work?

What is a will trust and how does it work?

What is a will trust? A trust is a legal mechanism for splitting the ownership and the benefit of an asset. For example, if you hold a house on trust for someone else, you would have the legal ownership, but they would have the right to live in the house or to receive any rental income from the property.

Can a will be used to create a testamentary trust?

A will can be used to create a testamentary trust. You can also create a trust for the primary purpose of avoiding probate court, called a revocable living trust.

Why do people use will and trust websites?

Generally, people use these websites because they want to save money. That is a lousy reason! What happens, often, is that you may save a few hundred dollars by creating an online will or trust.

Who is the settlor of a will trust?

A will trust is any trust that is created by your will. The trust comes into effect on your death. The settlor of the trust (the person who has established the trust) is you, which can be important to know when considering the tax implications of the trust.

Are trusts regulated in South Africa?

Trusts in South Africa are, in fact, largely unregulated, which frequently leads to their abuse. The main statute that governs South African trust law is the Trust Property Control Act of 1988, which regulates certain administrative aspects relating to trusts.

How is a trust governed by the law?

Trusts can also be governed by a particular statute. For example, the Companies Act envisages a trust to hold shares that have been issued but not fully paid for, and the Financial Institutions (Protection of Funds) Act provides for the safe custody and administration of trust property by financial institutions.

What does it mean to hold a house on trust?

A trust is a legal mechanism for splitting the ownership and the benefit of an asset. For example, if you hold a house on trust for someone else, you would have the legal ownership, but they would have the right to live in the house or to receive any rental income from the property.