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640 417 Maysure Financial Services


In order to effectively organise your financial security and legacy, you need to start by establishing your estate planning questions. These questions often touch on the complex topic of tax and trusts. To bring these concepts together takes a certain skill and expert understanding. This is where estate planning professionals are crucial.

We’ve put together a guide of some of the fundamentals when it comes to the relationship between trusts, estate planning, and tax considerations. Keep reading to find out if trusts are the right vehicle for you and your family. 


Lady holding pen

A trust can be defined as a tripartite legal relationship that exists between a founder, a beneficiary, and a trustee.

The trust is created by the founder, who places his or her assets in the trust, and then administrative control is given to the trustee. This is often done for the benefit of the beneficiary.

Trusts can provide advantages in several areas, such as:

  • Estate planning and management
  • Asset protection and preservation
  • Maximisation of tax-saving
  • Flexibility and confidentiality

Trusts can also operate independently or form part of a broader financial strategy. They are often used as an instrument to allow for the preservation and transfer of assets between generations. They can also be used as a means to manage and protect your assets, after or during your lifetime.


Two people discussing finances

In South Africa, there are many different types of trusts available. For our purposes, we will be discussing living (inter vivos) trusts and testamentary trusts. Each type has specific uses and benefits.

A living trust, or family trust:

  • Is established by the founder, or family, during their lifetime
  • Becomes effective at the time of its registration
  • Carries with it the benefit of enabling the wealth-building of its beneficiaries during the lifetime of the founder
  • May be used as a means to protect assets

A testamentary trust:

  • Is created by the terms stipulated within the will of its founder
  • Only comes into effect after the death of its founder
  • Offers the benefit of protecting both minors and vulnerable family members
  • It does not safeguard assets during the founder’s lifetime

There are several questions you can ask yourself to assist you with choosing a trust type.

Do you want peace of mind about the management of your children’s inheritance, and what may be left behind when you are gone?

Or, do you want to protect your current assets and build a lasting stream of growth for your family?

Contact us so we can help you find the right trust for you and your family.


Woman in discussion with couple

Setting up a trust, as opposed to a will, is an effective estate planning measure. It can result in faster transfer processes, lower administrative costs, and tax reliefs.

Because the growth of the trust does not directly form part of the estate, and instead belongs to the trust itself, the trust is afforded protection against estate duties (unlike with a will). This will also effectively protect the assets from creditors in the event that your estate goes insolvent.

In addition, it can also be used as a means to specify the type of wealth accumulation that you envisioned for your family assets.

For example, instead of providing a lump sum of capital, or splitting up the funds amongst the beneficiaries, the fund can remain unified, continue to grow, and subsequently be used as a source of consistent income.


Man putting money in a jar

Trusts are not without their drawbacks though. Two of the major pitfalls in establishing a trust in South Africa include:

  1. Heavy tax burdens on income that is kept at the trust-level (between 36-45%)
  2. The inability of the trust, as an entity, to directly invest off-shore

However, there are effective tax-saving mechanisms that can exist within a trust to counter these disadvantages.

For example: if a trust were to invest in an endowment fund, it would reduce its income tax to a flat rate of 30% and their capital gains tax (CGT) to as low as 12%.

An endowment fund also allows for the creation of offshore investment opportunities. This can not only diversify your investment portfolio, but also act as an effective tax-saving mechanism.


There are conditions under which it would be beneficial to set up a trust:

  • If your assets exceed 3.5m
  • When you have minor children or vulnerable family members
  • If you want to retain your family’s wealth well into the future

Before you make your decision, it is vital to know that the creation and management of a trust comes with more administrative requirements than that of a standard investment account.

It is a good idea to make yourself aware of these processes and costs before you make your decision. If your top priority is to save on taxes, then a tax-free investment might be a better option for you.

Start planning your future, today. Contact us on the details below.

+27 11 839 2302

couple going through documents
640 417 Maysure Financial Services

Tax Law Changes: Effects On Estate Planning

Within the South African tax sphere, changes are continuously made to ensure fair and balanced taxed households.

Every business owner, employee, and regular individual must be in the know regarding tax laws implemented in South Africa. We at Maysure Financial Services have a firm grasp on estate administration and the relevant tax laws. Keep reading to find out more about changes to tax and the related effects on your estate. 

What are the current changes to tax law?

Man writing in book

Proposal of exit tax on retirement interests (for now)

You may wonder what ‘exit tax’ means’? In simple terms, it is the tax that is payable (when you leave the country) on either foreign fixed property, trusts, shares, or unit trusts as well as similar investments. All of this forms part of the standard process for emigration.

The proposal of introducing an exit tax was drafted last year but has since been on hold. During this “hold”, no tax will be charged on the assets sold. As a result, now is potentially a good time to move for those looking to leave.

Conversations are still ongoing. as the proposal will be re-examined later this year. Here at Maysure Financial Services, we assist you to prepare for the future of your estate and retirement by planning according to what regulations and legislation are in place.

Use of retirement interest to obtain annuities

In the past, an individual could not acquire annuities upon their retirement. However, now, because of the amendment to the Income Tax Act, individuals can choose from different types of annuities. Retirement annuities are an excellent vehicle of income for retirees.

Estate duty

Estate duty should not be an unfamiliar term. Well, that is if you have written a will and made plans for your estate upon your death. 

There are no changes to the tax regarding this particular aspect of estate planning. But, it must be noted once a deceased person’s assets have been filed. This is essential because it is the ultimate duty of the executor to ensure the duty levied on the property of the deceased is paid.

Estate duty is charged on movable or immovable properties/assets of a deceased person. Among other responsibilities, the executor needs to know the value of these assets. 

At Maysure Financial Services, we offer estate administration services to ensure everything is distributed according to your final wishes and loved ones’ needs. 

Capital and income gains tax

Family laying on the ground

When you pass away, your tax expense doesn’t leave earth with you. SARS has the right to claim what is owed to them before any finalisation of an estate. These include income tax, capital gains tax, donations tax, and any other form of tax that may be applicable.

Capital gains tax refers to a tax that is not separate but forms part of income tax. A capital gain occurs when you dispose of an asset for proceeds that exceed its base cost. This tax is normally for companies, individuals, or trusts.

A resident of South Africa, as stated in the Income Tax Act 58 of 1962, is responsible for capital gain tax on assets that are located both in and outside South Africa.

Whistles a  non-resident is responsible for capital gain tax only on immovable property in South Africa or assets of a “permanent establishment”  in South Africa. 

Couple talking to estate administration consultant

How all of these tax laws affect your estate

Drafting an estate plan shows your loved ones that you care for them and understand the importance of planning. Tax laws make up an important part of estate planning which may affect your estate in the unfortunate but inevitable event of your death. 

In many ill-fated cases, families are left in devastating financial and emotional situations because of hefty tax penalties and red tape. A financial professional can help you to navigate the intricate web of tax regulations and stipulations. 

Changes are inevitable. It is how you plan around them that matters.

Man sifting through paperwork

If you need assistance in understanding Acts and Laws concerning your estate, don’t hesitate to call us.

+27 11 839 2302

Maysure Financial Services is a registered financial services provider. FSP 15173

Tax deductibles
640 400 Maysure Financial Services

Optimising Tax Deductibles: Natural Persons Tax

With the taxation season knocking at our door once again, you may have that heavy feeling descending on your shoulders. As much as you may dislike doing it, failing to file your tax returns can get you into serious trouble. The law does not make exceptions for being overwhelmed or stressed.

It’s always worthwhile to get your financial affairs in order. Who knows? Maybe the South African Revenue Services (SARS) owes you.

The point is you can make it through your tax season and capitalise on certain benefits. Here is a guide on how to optimise your tax deductibles.

Overview on natural person’s taxes

Tax time on scrabble blocks with clock in the middle

Taxes that are levied by the national government of South Africa under the Income Tax Act 58 of 1962 are as follows:

  • Natural persons tax (also known as normal tax) income tax

The below taxes form part of a natural person’s tax:

  • PAYE
  • Provisional tax
  • Withholding tax on royalties
  • Donations tax
  • Dividends tax

For this post, we will be focusing on tax returns and deductions. If you would like to know more about the various types of tax laws, read this guide on taxation in South Africa.

Deductibles to remember

Big TAX on chalk board with lady on computer

If you want to optimise your tax deductibles here are the crucial points to keep in mind for your tax return this year.

Contribution to a pension, provident, and retirement annuity fund

Investing in your future will always has a beneficial return. This does not only relate to your retirement, but also to your monthly contributions into pension, provident and retirement annuity funds.

Yes, these contributions are tax deductible. Although these are subject to an annual limit of R350 000 and a maximum of 27.5% of your gross earnings or taxable income (whichever is higher) within a tax year.

Medical aid contributors

Medical aids in South Africa can be costly, which makes receiving back from the medical insurance industry a relief. Here is the good news…

If you belong to a medical aid scheme, as the primary member of the medical aid you qualify for a medical tax credit at the value of R310. Not only do you qualify for it, but your first dependent receives the same tax credit value.

There is also a further credit of R209 for each member that is registered on your medical aid.

Donations for registered Public Benefit Organisations (PBO)

A group of people talking about the tax season

If you donate a sum of 10% of your taxable income to a Public Benefit Organisation (PBO), you can also claim a tax deduction.

However, it is not as simple as just claiming back tax. The PBO must be registered with SARS and grant a valid tax certificate for your contribution.

Travel allowances

If your employer pays you travel allowances, you can receive returns from SARS. Ensure you keep a detailed trip logbook with the related costs. If you do not have this proof, SARS can and will reject your claim.

This is an excellent deductible to keep in mind, especially if your work requires you to spend substantial time away from your loved ones. At least you get some money back in pocket for the time away from them and the added mileage.

Commission-related expenses

two people in business talking about tax

If you are in an industry where you earn commission on top of the basic salary, you may also be entitled to a deductible. This commission-based income is known as 3606 on the IRP5 form.

If the amount makes up for more than 50% of your total income, SARS will see that all costs incurred from making a living from the commission are deducted. Bear in mind that you will need to have evidence of this for SARS.

Business expenses (self-employed)

Self-employed business expenses are deductibles that talk to independent contractors, freelancers, and sole proprietors. If you have stationery, a phone or even employee costs, SARS will allow you to deduct these expenses related to making your income.

You must be thorough when it comes to keeping invoices and records of these expenses. At the end of the day, you want to see some money in your pocket and it will pay off if you follow procedures.

Tax-free investment accounts

Couple talking to a professional about tax

The government introduced tax-free savings accounts to encourage South Africans to save more money. With the tax-free accounts, investors can save R36 000 annually, with the lifetime limit of R500 000.

This gives you the advantage of the compounding interest dividends. You also don’t have to pay capital gains tax.

The dividends received by a person, whether you are a South African citizen or not, are normally exempted if these are South African resident companies.

Final thoughts on optimising tax deductibles

tax planning for this season

Getting the most out of your tax returns can benefit you for a lifetime. Understanding the financial system does not just benefit your pocket, It gives you the financial knowledge you need in order to work with SARS to your benefit.

If you feel you are lacking in knowledge and want to learn more, ask. Your money is a valuable asset that needs to be managed with care and consideration.

If you’re not sure where to turn, contact us at Maysure Financial Services. We will assist you to optimise your tax deductibles and continue on your road to financial freedom.

+27 11 839 2302

Maysure Financial Services is a registered financial services provider. FSP 15173