Page 35 - Waterfall City Issue 9 September 2024

be updated to reflect your changing
circumstances.

Few things impact our priorities as
much as having children. Parents’ goals
and dreams reach beyond their own
lifetimes as they think about the legacy
they want to leave behind. In such
circumstances, an estate plan must
provide wealth protection and cater for
the effective transfer of wealth. In some
families, this could mean setting up a
family trust; in others, it could mean
securing a family business for future
generations. In both these scenarios,
there are various strategies to consider,
each with its own tax implications and
each having to be addressed correctly in
one’s will. Therefore, scheduling regular
meetings with a financial adviser to
only once you have a proper estate capital gains tax. Fortunately, these can discuss any such changes and review
plan in place can you have true peace be estimated ahead of time, and it is your estate plan in light of them is
of mind. Having an estate plan ensures possible to put a plan in place to ensure critical.
that your executor will be able to deal that these expenses will be covered
with your financial obligations and when you pass away. The doctor is in
assets in accordance with your wishes As tempting as it is to self-medicate, it
and in the most cost-effective way. Don’t neglect regular check- is always advisable to use a professional
ups when it comes to health issues –
Prevention is better than cure As we transition through the different including your financial health. It
It is tempting to delay talking to a stages of our lives, our financial is never too soon to reach out to a
financial adviser about estate planning priorities also change. Whether it is financial adviser about your estate
– especially when we are younger. a growing investment portfolio or a planning, and it is never too late to
We offer excuses such as not having growing family, your estate plan must review your current estate plan.
accumulated significant assets or not
starting a family yet. The principles
of estate planning remain the same,
regardless of your wealth or personal
circumstances, and – unfortunately – so
do the unintended consequences of not
having an estate plan in place.

Every estate faces a potential ‘liquidity
risk’. Simply put, this is the risk of not
having sufficient cash available to settle
the claims against the estate. If there isn’t
enough liquidity, the estate executor
will be compelled to sell some of the
estate’s assets to settle any outstanding
claims against it. If you don’t have any
significant debts, this might not raise
alarm bells. However, even if you don’t
have any debts, certain unavoidable
expenses are still associated with
winding up a deceased estate. These
include executor’s fees, estate duty and

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