In many states, a revised version of UPIA (RUPIA 1997) has replaced the first revision (RUPIA 1962) or the original 1931 law (UPIA 1931).
The growth on assets, such as shares, transferred to a trust is not subject to estate duty, because the growth belongs to the trust. This means that a trust is not liable for estate duty, other taxes or costs, such as transfer duty, executor's fees, or conveyance fees, that would be payable in the hands of your estate or heirs. The value of any assets transferred to a trust is effectively frozen for estate duty purposes. Trusts continue to pay benefits to dependants (beneficiaries) after you die.
This may result in your dependants not receiving an income until after your estate is finalised. If a beneficiary becomes insolvent, the assets in the trust continue to be protected (unlike shares in a company).
Understanding how these changes may affect trust and estate client's situations will be valuable to advisors.
Advantages of a trust There are a number of advantages to placing assets in a trust for estate planning purposes. If you have made use of a loan to the trust, the value of the assets as at the date of transfer remains an asset of your estate because of the loan account in your estate. Also, the trust does not pay CGT as long as an asset is not sold. On the other hand, assets in your estate may not be freely available to your dependants, because your estate is frozen during the winding up process. A beneficiary cannot sell a right in a trust (unlike shares in a company).
Additionally, ABC certification encourages attorneys to strive toward excellence, and recognizes those attorneys who have met ABC's rigorous standards. Scott Bovitz, Bovitz & Spitzer I have been interviewing bankruptcy judges about their hobbies. and not find enough material for one Chapter 8 Humor column.” However, you would be […] The Bankruptcy Code defines the term “financial institution” as meaning: (A) a Federal reserve bank, or an entity that is a commercial or savings bank, industrial savings bank, savings and loan association, trust company, federally-insured credit union, or receiver, liquidating agent, or conservator for such entity and, when any such Federal reserve bank, receiver, liquidating […] The concept of insider is defined in 11 U.