Page 29 - Waterfall City Issue 3 March 2025

If you are a member of a retirement Recipients of death benefits may and that you have provided for estate
fund, a financial adviser can help choose how they wish to receive the duty and other estate costs to ensure
you ensure that the trustees of your benefits. Options available to them that none of your assets need to be
retirement fund have sufficient records would be to: sold to cover these expenses.
of your dependants, as well as any • take the entire benefit as a cash lump
additional information that you feel sum (subject to taxation, which your If you have a retirement annuity, this
may assist them in their decision- financial adviser can advise on), must be included as part of your
making, thereby ensuring that such an and/or estate plan – even though the benefits
investigation is a quick process if the • purchase a compulsory annuity (in at death are paid in a somewhat
need arises. which case tax will be payable by different manner. Equally, things like
the income recipient on the income trusts may play an important role. Your
received from the compulsory financial adviser can introduce you
annuity, similar to how a salary is to other experts, such as a fiduciary
typically taxed). adviser, who can work with your
financial adviser to assist with your
Estate planning and the role estate plan.
of retirement funds
A key component of your overall Retirement planning is an important
financial plan is an estate plan. This aspect of a comprehensive financial
plan sets out how you want your estate plan. One needs to carefully consider
to be structured to help ensure that how this ‘piece of the puzzle’ fits into
your financial goals and dreams for one’s overall financial plan. Remember
your family will be achieved, even after that everyone’s situation is unique, and
your death. your goals will require individualised
planning. Speak to a financial adviser
Important aspects of an estate plan to help you achieve your goals.
include making sure that your wishes
are very clearly recorded in a valid will 1 Source: Today’s Trustee

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