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Taxability of lump sum amount transferred to a family trust

04 March 2014   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

The answer to this query is based on legislation as at 2014/03/04.

Q: When a person want to make a Trust (family) and put a lump sum of money in the trust will this be taxable? 

A: If the amount is donated to the trust, then donations tax will apply (20%) in terms of s 54 of the Income Tax Act on the amount which the donation exceeds the annual exclusion for natural persons (R 100,000).



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