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Trusts and wills are two completely different things.

A will is a document that contains your final wishes on how you want your estate to be distributed when you pass away. Your will could contain detail of who should inherit your assets when you pass away, for example, properties, vehicles, jewellery, investments, etc. Without a will, there are no clear instructions as to how you want your estate to be distributed and so the law of Intestate Succession will apply. This means your estate will be distributed by the government according to a set formula. It is important that you make sure your will complies with the Wills Act to ensure it is valid. It is best not to be too detailed in your will, as you would then have to amend your will every time something changes, but you should broadly consider the various scenarios that may be relevant.

A trust is a legal structure established to transfer property and assets to beneficiaries. A trust requires continuous management by trustees but can be a useful structure for estate planning. Testamentary trusts can be created through your will and when set up correctly, they provide financial provision, safeguarding of assets, and certainty for beneficiaries until the beneficiaries are able to manage their inheritances effectively themselves. This means they enable 'financial guardianship' for your beneficiaries, much like a guardian who will care for your children. There are certain tax exemptions that may apply to the trust depending on its specific purpose. This helps ensure that the inheritance, which is left to minor children or beneficiaries who are unable to handle their own financial affairs, is managed well and to their benefit. In the case of minors and individuals who are unable to manage their own finances, if there is no trust in place, their inheritances are paid to the Government Guardian’s Fund.