ESTATE PLANNING, EXECUTORS & CURATORS
Most of us do not want to talk about death and therefore avoid talking about our last will and testament.
CAN YOU ANSWER “YES” TO ALL OF THE FOLLOWING QUESTIONS?
- Do you know how much executors remuneration your estate will have to pay?
- Do you know if your estate will have enough cash to pay all liabilities?
- Do you know if there will be enough capital and income to provide for your family after your death?
- Is your will up to date?
- Do you understand your current estate plan?
- Does your will indicate a guardian for your minor children?
- Does your will provide for the inheriatance of minor children to go to a trust rather than to the Guardians’ Fund?
- Does your current estate plan make use of the R3 500 000 discount for estate duty purposes?
DID YOU ANSWER “NO” TO ANY OF THE QUESTIONS?
THEN IT IS TIME TO RELOOK YOUR ESTATE PLAN AND WILL
It is also important to make sure that the 2010 changes to the Estate Duty Act is applied in your estate plan:
- The surviving spouse gets a discount of R7 000 000 less the used portion of the R3 500 000 of first dying spouse. This does not mean that trusts will no longer be relevant for estate planning. By moving certain assets to a trust you can prevent future growth on assets to form part of the surviving spous’s estate.
OUR APPROACH TO ESTATE PLANNING
- Keep the plan as simple as possible so that clients understand it better.
- Answer the three critical questions: Executors Remuneration, Estate Duty and Cash Surplus/Shortfall on a one-page estate summary.
- Make executors remuneration a fixed amount so that the executors remuneration is not linked to higher market values. A fixed executors remuneration has certain benefits for you. You can negotiate a fee that is less than the prescribed fees and you could potentially save on estate duty and capital gains taxes.
WHY USE ENSLINS AUDITORS FOR ESTATE PLANNING?
- We have knowledge of the applicable tax laws.
- We have good knowledge of our client’s financial affairs which contributes to effective estate planning as well as executing the estate.
- Our clients know us and know that they can count on our integrity.
WHAT INFORMATION DO WE NEED TO START PLANNING YOUR ESTATE?
- Market values of properties (if applicable);
- Market values of vehicles and equipment (if applicable);
- Market values of livestock/game (if applicable);
- Summary of any other assets (if applicable);
- Summary of outstanding liabilities (if applicable);
- Schedule of policies that you can obtain from your broker (if applicable);
- Marital status: Not married, Divorced, Married: In Community, Out of Community, With or without accrual;
- Latest financial statements (if applicable).