Topic “How to choose between a beneficiary fund and an umbrella trust”
How to choose between a beneficiary fund and an umbrella trust
Beneficiary funds undoubtedly provide better protection for dependants’ funds than umbrella trusts. This is because they fall under the Pension Funds Act, whereas umbrella trusts fall under the less stringently regulated Trust Property Control Act. There are also tax advantages. Lump sum payments from approved funds into a beneficiary fund are tax exempt, whereas those into an umbrella trust are taxed before transfer.
