Probably the most important person who must receive a copy of the trust is the person or entity designated to succeed the trustmaker. The successor agent is responsible for the management of the trust and must verify the document in order to identify the beneficiaries and determine whether specific restrictions or instructions apply to their shares in the trust. Until recently, there were tax benefits for living trusts in South Africa, although most of these benefits have been eliminated. Protecting assets from creditors is a modern advantage. With notable exceptions, the trust`s assets are not held by the directors or beneficiaries, the creditors of the trustees or beneficiaries may not be entitled to the trust. Under the Insolvency Act (Law 24 of 1936), assets transferred to a living trust remain threatened by external creditors for 6 months if the debtor owner is solvent at the time of the transfer, or 24 months if they are insolvent at the time of transfer. After 24 months, creditors are not entitled to assets in the trust, although they may attempt to add the credit account, forcing the trust to sell its assets. Assets can be transferred to the living trust by selling them to the Trust (through a loan to the Trust) or by giving money (each individual can give R1000 R1000 per year without collecting tax on donations; 20% of the tax on donations apply to additional donations in the same tax year). Under South African law, living trusts are considered taxpayers. Living trusts are subject to two types of taxes, income tax and capital gains tax (CGT). A trust pays 40% flat-rate income tax (individuals pay according to income criteria, usually less than 20%).
However, the income from the trust can be taxed either in the hands of the trust or the beneficiary. A trust pays the CGT up to 20% (individuals pay 10%). Trusts do not pay estate tax on deceased persons (although trusts may be required to repay outstanding loans to a deceased estate, the amounts of which are taxable with the deceased`s inheritance tax).  Under the common Reporting Standard, a trust would, in most cases, be classified either as a reporting financial institution (FI) or as a passive non-financial entity (passive non-financial entity). If it is an IF, the trust or agent is required to report to its local tax authority in Cyprus regarding accounts submitted for reporting.