Are you interested to learn about the Absa trust account in South Africa? Then read this quick guide.
We will first show you why you need a trust account.
Why You Need A Trust Account
You need an account if you have substantial assets and want your estate to be distributed in a specific way.
Consider an account if you want to transfer and grow assets in a living trust instead of your estate to minimize estate duty and other costs.
The account is also suitable to ensure continuity of financial support protection from generation to generation.
Suppose you want to benefit a particular cause like a charity organization or a dependent family member during and after your lifetime. In that case, a trust account will help you in a big way.
These are some reasons you should have an Absa trust account in South Africa.
Absa Trust Account
The Absa trust account helps cater to the needs of registered or legal trusts while also earning interest on your funds.
Wealth is transferred to the next generation or a worthy charity that you have listed.
Assets are protected such that a beneficiary can’t sell a right in trust, and assets in the trust are protected in case of insolvency.
Income from a trust account can be structured to provide tax efficiency, especially where the trust is below the tax threshold of South Africa.
Custodianships of assets in the account ensure that assets don’t go to waste or mismanagement.
You have immediate access to your funds and can withdraw money from your account whenever you need to.
The account offers very competitive interest rates, and the interest is calculated daily and paid monthly.
You have free access to Absa online banking, and you can link your account to multiple business accounts.
This is how the Absa trust account works in South Africa.
Types Of Absa Trusts Accounts
Here are the three major Absa trust accounts:
- Testamentary trust account
- Inter-vivos trust account
- Beneficiary fund or the employee benefit trust account
- Business trust account
These are the various types of Absa trust accounts in South Africa.