I am a beneficiary (and original donor) of a family trust registered in South Africa.
1. Suppose the trustees decided to liquidate the trust assets and pay the balance to me (after meeting any income tax due in the trust and any capital gains tax arising on the sale of the assets).
How is the net payment to me from the trust treated for tax purposes? Do I receive the net assets without any further tax liability (i.e. with no donations tax, or income tax payable?)
2. Suppose that the trust assets are not liquidated and the trustees decide to make a payment from the trust assets to another beneficiary of the trust (a major child), is the tax treatment of the payment in the hands of that beneficiary the same?