YOUR ESTATE:

Your estate refers to everything you own and owe, from property and cars to investments and debts. Proper estate planning will ensure that your estate is set up in a tax-efficient way that benefits you during your lifetime and your beneficiaries after you die.

WHAT IS ESTATE PLANNING:

Estate planning is the process of anticipating and arranging for the disposal of an estate. A good estate plan is one that eliminates uncertainties over the administration of a deceased estate and provides a certain amount of consistency, at a very difficult time. It also maximises the value of the estate by reducing estate duty and other expenses.

Estate planning involves wills, trusts, life insurance policies, gifts, donations and powers of attorney.

As part of this planning provision is also made for those left behind, in particular guardians are often designated for minor children and beneficiaries in incapacity.

Specific final arrangements, such as whether to be buried or cremated, are also often part of the documents. One may also require a living will, a living will sets out directives concerning end of life decisions.

Estate planning essentially involves structuring your personal financial affairs in such a way that:

Your requirements in terms of your will are carried out, smoothly;

• The assets in your estate are protected from the possibility of a forced sale by assessing the availability of liquidity in your estate to meet any needs including – special bequests, debt, liabilities for estate duty and other taxes as well as ensuring that your spouse has sufficient income during the winding up of your estate;
• Estate duty is minimised;
• Tax including Capital Gains Tax is minimised;
• Inheritances are sufficiently protected for your heirs;
• Your business interests are protected during your lifetime and on death for the benefit of your heirs;
• There is sufficient flexibility to accommodate changes in the law and/or economy, to ensure that an Estate Plan that is too restrictive does not hamper the future growth of assets in your estate.

WHAT CAN I DO:

It is important that you consult with a competent professional to advise you on and prepare the necessary documentation to ensure the smooth winding up of your estate.

Always remember an Estate Plan is achieving a workable plan that balances as best you can, the following objectives:

1.  Making adequate financial provision for those you leave behind.

2.  Optimising your Estate for the benefit of your heirs by avoiding the punitive consequences of the prevailing legislation.
3.  “Ruling from the grave” in a positive way as best you can, for the benefit of your heirs.

4.  Taking full advantage of the one opportunity you get in life to do exactly as you please without any questions on your decision.