The Estate Planning process involves the structuring of assets in the most tax efficient way in order to ensure protection and preservation of assets from one generation to the next. It includes the drafting or reviewing of your Will.
Factors that should be taken into account include:
- Ensuring that the structuring of assets in the Estate and the Will are synchronised to make the execution of your wishes feasible;
- Providing for minor children;
- Providing for children or other family members with special needs;
- Providing for sufficient liquidity in the Estate after death. More than 30% of deceased estates in South Africa does not have sufficient cash available for all debts, costs, cash bequests, taxes, etc;
- Taxes payable during life and at death, including income tax, capital gains tax, and estate duty;
- The nomination of an Executor and ensuring that the Executor is granted the powers necessary to fulfil the role properly;
- Business succession planning.
Consult a Fiduciary Practitioner of SA ® (FPSA®) or a FISA member about your Estate plan.
Moneyweb/FISA podcast: The importance of proper estate planning
Informative article: Property purchase and estate