FSP NO: 55249
An Authorised Financial Services Provider
“Restructuring Tomorrow, Today”
Estate Planning
What is estate planning?
This is simply the process of arranging as well as managing your assets during your lifetime so that when you pass on, your estate is transferred according to your wishes.
According to the Key Insights done by Capital Legacy :
75% of South Africans die without a valid will in place.
90% don’t plan for the unexpected cost of dying and winding up an estate.
Top 5 consequences of not having a will
What are some of the costs of dying ?
Executor fees – executors may charge up to 3.5% + VAT of the value of your estate. If you don’t have this money available , the Executor is entitled to auction off your assets to pay his fees.
By law, minors are not allowed to inherit so you should set up a Trust upon your death for them to inherit your assets. Trust and ongoing Trustee fees can erode their inheritances.
When you pass away, your bank accounts will be frozen and your family could have limited access to cash.
Estates can take months, if not years, to wind up and families mistakenly assume the Estate will pay the monthly ongoing expenses such as lights, rent, groceries, etc. but funds are often tied up until the Estate is finalized.
Most people leave their entire Estate to their Spouse, but if both of you pass away simultaneously or within a month and your Children inherit everything then Capital Gains Tax and other inheritances taxes are triggered.
