ESTATE PLANNING:
Estate Planning is the arrangement of an estate in terms
of which the Planner’s objectives in dealing with the
assets and liabilities are achieved.
Important aspects of Estate Planning:
Will
- A will is a legal document which must conform to certain
legal requirements.
- It is a way in which a person can decide while living,
how his assets are going to be distributed after his death.
- If no will has been drawn up and the person dies, he/she
will die in testate and the distribution of assets will
be done according to legislation and not necessarily as
he wanted to distribute his assets after death.
Marriage
- It is important when doing Estate Planning to know whether
the Person is married in community of property, or Out of
Community of Property (ANC). If married by ANC it can also
be with or without Accrual.
Dependants
- Has proper provision been made for the welfare of dependants
in case of death of the testator.
Liabilities
- It is important to make sure that the liquidity of the
Estate is enough to cover all costs for the winding up of
the estate as well as all liabilities and possible claims
against the Estate
Planning
- By doing proper planning you can reduce Executor’s
Fees and Estate Duty.
Estate Duty
- Estate duty is only applicable where the Estate is in
excess of R3 500 000. All assets bequeathed to a spouse
is also free of Estate Duty
- (Sect. 4q). If your assets exceeds this amount it is essential
that you get proper advice on how to limit costs.
Conclusion
- By doing a proper Estate Planning it can help to reduce
the time frame within which the Estate is wound up.
- It can reduce costs and you can decide how you would like
to distribute your Assets when you are no longer there to
give an input.
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