Trading Entity / Trusts

[Holger]

Hi I joined the forum after meeting Dave on Saturday at Tony's seminar www.webexposure.co.za.

Dave you said that you had an alternative/new solution for business trading entities? Or was I picking up stompies?

[Dave A]

Possibly a fragment.

Tony was talking about slick lawyers with overly gloss offices that charge R5000.00 to set up a trust. My comment was that there are cheaper options (lawyers) that will do the job for substantially less.

For example, a method to get it done for virtually nothing is when buying a property. You make the offer on behalf of a trust to be formed, and ask the conveyancor to draw up the trust deed.

The bulk of the trust deed is drawn from Butterworths (a legal resource used by almost all lawyers). A couple of mods to get a non-beneficiary party included as a trustee and you achieve the same objective as the folk who recommend trusts as a form of asset protection from business risk. And with a bit of negotiation, done for about R400.00.

When I spoke to my (relatively) new auditors, they reckoned they could get a trust set up for about R750.00 for a big client to R1500.00 for a small client. Obviously, they have a regular lawyer they use for the purpose.