Is a company a juristic person?
Companies are juristic persons. The common law also recognises as juristic persons associations formed for purposes other than that of making a profit such as clubs and societies.
Is a trust a juristic person?
A trust is a legal entity which is created to hold assets for the benefit of certain persons or entities. It is not a juristic (legal) person but there are times when, in terms of certain statutes, a trust is regarded as having a separate legal identity (for example for tax purposes in terms of the Income Tax Act).
How does a family trust work?
At the core of a family trust, there are three parties: a grantor, a trustee and the beneficiaries. The grantor is the person who makes the trust and transfers their assets into it. The trustee is the person who manages the assets in the trust on behalf of the beneficiaries. An irrevocable trust is permanent.
Do family trusts pay tax?
Family Trust income The trustee is free to distribute trust income to as many beneficiaries as possible, and in proportions that take best advantage of those beneficiaries’ personal marginal tax rates. The beneficiaries then pay the tax on distributions made to them.
Can a beneficiary live in a trust property?
While the Settlor is alive, the Trust is administered solely for his or her benefit. Of course, a Trustee who is NOT a beneficiary cannot live free in Trust property because that would be a conflict of interest and a breach of duty for the Trustee. But even as a Trustee/beneficiary, living rent free is not allowed.
How long does a trustee have to distribute assets?
12 months to 18 months
What happens when a beneficiary of an irrevocable trust receives money?
As noted above, an irrevocable trust must pay income tax on its earnings. However, a trust is also entitled to take a deduction for income distributions made to a beneficiary. As a trust beneficiary, then, you would owe income tax on distributions made from trust income but not from the principal.