Estate Planning
Your will is probably the most important document you will ever sign in your life!
Your will is probably the most important document you will ever sign in your life, but more than 60% of people die without a valid will. Remember a Will is a living document and need to be amended and update on a regular basis. The only way you can make sure that your assets are inherited to specific persons is to stipulate it in a will.
If you die without a will, your Estate will be winded up according the Intestate Concession Act, which could have a severe impact on your loved ones. Just as an example if you die without a will, your total assets will be divided equally between your spouse and your children and this may cause a lot of head aces for your loved ones.
Estate Expenses
You must also keep in mind that the winding up of an estate are expensive. These are some of the fees that the estate must pay.
- Executors fees of 3.5% plus Vat on the total value of your Estate.
- All liabilities need to be settled.
- Capital Gains Tax.
- Estate Duty if applicable.
- Income Tax of the deceased and the estate need to be finalised and paid to SARS.
Cash is King
This brings me to the next problem.
There must be enough cash in the estate to cover these expenses. If the Executor do not have enough funds in the estate, he will have to sell assets for example your vehicle or house with severe impact on your spouse and children.
Summary
I beg you to speak to a financial planner to help you draw up a will land do a proper estate planning.