The cost of the trust can be 1% of the estate per year, compared to the one-time estate costs of 1-4% for the estate, whether there is a will or not. Unlike trusts, wills must be signed by two or three witnesses, the number depending on the law of the jurisdiction in which the will is executed. Legal protection provisions that apply to estates but do not automatically apply to trusts include provisions that protect the deceased`s assets from mismanagement or misappropriation of funds, such as the requirements of . B for binding, insurance and individual settlements of estate assets. Credit Shelter Trust: Sometimes referred to as a bypass trust or family trust, this trust allows a person to inherit an amount up to (but not above) the estate tax exemption. The rest of the estate is transferred tax-free to a spouse. In the case of a living trust, the settlor may retain some degree of control over the trust, for example. B by designating him as a protector under the trust deed. Living trusts are also motivated in practice to a large extent by tax considerations. When a living trust goes bankrupt, the assets are usually held for the settlor or settlor on the resulting trusts, which in some notable cases has had catastrophic tax consequences. [Citation required] Only a funded living trust avoids the estates court. In a testamentary trust, ownership of the will must pass through the trust and therefore go through probate court proceedings. Until recently, there were tax benefits for living trusts in South Africa, although most of these benefits have been removed.
Protecting creditors` assets is a modern advantage. .