Will vs Trust – know the difference

Family Trust explained

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To ensure that your assets are safe and protected, you may want to consider a family trust. Having a family trust means that your assets will be kept safe and secure for the trust beneficiaries, those who will benefit from the trust. Furthermore, the trustee will not enjoy any personal benefits from the trust but will simply hold the assets for the trust beneficiaries.

Exactly how is this different from your last will? It is simple. The will takes effect only after one’s death, while the trust can be executed in one’s living days.

Trust registration South Africa

Before going forth with a trust, you need to understand why you’re getting a trust. The following are important pointers to consider when getting a trust:

Understand why you are setting up the trust: think about the purpose of the trust.
What type of trust would you like to set up? Find out more about the different types of trusts and make a call as to which trust you will require.
Property and assets: think about how you like to set out the rules of the trust, and think about how this will govern your property and assets.
Beneficiaries: the person who will benefit from your assets. Think about who your beneficiaries are and how they will benefit – will it be a few beneficiaries or will it be an institution?
Trustees: These are the ones who are in charge of the trust. He/she must understand the expectations and rules of the trust and ensure that all is in order.
Rules: different trusts have different rules. Your legal expert will explain this to you when attempting to register your trust. It is important that the rules are carried out accordingly.

Trust vs Will

First of all, a will is a written document signed with witnesses that indicates how your assets will be distributed at the time of your death. A will is effective only after your death, by which all wishes of the deceased must be carried out accordingly.

A trust, on the other hand, can be effective before and after death and is associated with assets and property management. And while this may sound convenient and appealing, it does come with its own disadvantages as well. The trust can be more of a hassle due to it having to be funded and actively managed during your living days.