Adviser warns a family trust is not a tax saving
Warren Ingram of Galileo Capital says a trust pays income tax at a flat 45% from the first rand, with no tax brackets or rebates. He says set-up and yearly costs can be high.
Ingram, a personal financial adviser, said the effective capital gains tax rate inside a trust is 36%. He said the maximum rate for an individual is 18%. He also said donating assets into a trust costs 20% donations tax.
Ingram said initial costs to set up a trust are likely to range from R8,000 to R25,000. He said annual fees are probably R3,000 to R8,000 for financial statements and tax returns. Trustees add R10,000 to R35,000 a year.
Ingram said many finance professionals describe family trusts as a powerful tax-planning tool. He said trusts make sense in some cases. These include a child or adult dependant with mental incapacity, a family business, farm or holiday house, or a very large estate that spans generations.
Key facts
- Who
- Warren Ingram (Personal financial adviser at Galileo Capital)
- What
- Warren Ingram of Galileo Capital gives advice on whether a family trust is worthwhile, citing a flat 45% income tax rate in trusts, a 36% effective capital gains rate, 20% donations tax, and set-up and annual cost estimates.
- When
- 27 October 2026
- Status
- Reported