Page 34 - Waterfall_Issue 8_2022

Waterfall News

others, a copy of your will, confirmation
of executors, your birth certificate,
marriage certificate, antenuptial
contract, divorce certificate,
maintenance orders, title deeds,
trust deeds, vehicle registration and
ownership documents and share
certificates. Other information to
consider making available includes
gun licences, codes for your safe, loan
agreements, digital passwords, logon
credentials, alarm codes and a list of
expenses or creditors, especially if
you are responsible for the monthly
household and/or business expenses,
so that you can ensure that your family
can continue with these payments.

INHERITANCE OF MINORS
Structuring your estate to ensure that
your children are adequately provided
for in the event of your passing is
imperative. There are some things
you just cannot leave to chance. It is
important to bear in mind that children
under the age of 18 may not inherit
lump sum pay-outs or other assets
directly. This is where a testamentary
trust is incredibly valuable.

It is also very important to nominate
a legal guardian in your will for PHOTO BY MARK TIMBERLAKE
your minor children. The legal
guardian can also be nominated as taxed on worldwide assets, so it is estate will devolve in terms of the rules
a trustee of a testamentary trust. important to consider specialist advice of intestate succession, as stipulated
on situs taxes. If you own UK and/ in the provisions of the Intestate
REDUCING TAX LIABILITIES or US assets, you could potentially Succession Act (Act 81 of 1987). This
Although it is not possible to avoid become liable for taxes in these means your estate will be divided
paying tax altogether, proper jurisdictions, including income tax, among your surviving spouse, children,
estate planning will enable you to capital gains tax and estate duty. parents and/or siblings according
structure your estate in the best The situs of an asset is generally to a set formula, which is an even
way to reduce tax liabilities. the place where an asset is deemed more onerous and stressful process.
to be located for legal purposes.
Estate duty (which is essentially Losing a spouse or family member
tax paid on the transfer of wealth There are various options that can be is traumatic enough, but being
from your deceased estate to your used to reduce the estate duty liability unprepared for the financial
beneficiaries) is levied at 20% of and therefore maximise the inheritance realities of death can make it
the dutiable amount of an estate of your beneficiaries. Retirement funds even more devastating.
up to R30 million, and at 25% on (pension, provident and preservation
the dutiable amount exceeding R30 funds, as well as retirement annuities) Estate planning is one of the most
million. The dutiable value of your are not considered property in your powerful tools we have if used
deceased estate will be calculated by deceased estate and will not be correctly. It is even more powerful
adding the value of your property, subject to estate duty. Living annuities when used in conjunction with
deducting any allowable expenses, are not estate dutiable either. a holistic financial plan. Contact
and then deducting the section 4A an adviser to ensure your wishes
rebate (currently R3.5 million). Note It is essential to consider that if you die are carried out as you would like,
that South African residents are intestate (i.e. without a valid will), your rather that leaving it to chance.

32 Waterfall Issue 8 2022