whose estate is it anyway (senate group)
TRANSCRIPT
OPTIONAL AGENDA SLIDE
WHOSE ESTATE IS IT ANYWAY ? TEN KEY QUESTIONS THAT YOU SHOULD BE
ASKING YOUR CLIENT
Tanya Jacobs
August 2012
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AGENDA
● The 10 key questions you should be asking
yourself
● Glacier Fiduciary Offering
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1. Do I have a strategic estate plan in
place?
divorce business structures
offshore disability retirement
dependents trust structures
marital regime
emigration insolvency
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“There is nothing quite like a will for
fomenting family dissention”
Van Deventer v Van Deventer SCA Case No 88/06
2. Do I have a signed, and up to date
will in place?
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Do you have a signed, and up to date will in place?
● The key to the estate plan
● Must deal with your assets
● Must express your wishes
● Must be valid and up to date
● Be careful - divorce (3 months)
● Consider foreign assets
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3. Have I used the R3,5 Abatement to
best effect?
● The abatement roll-over
● Bequeath R3,5 million to a testamentary
trust
● The type of asset
● Loan accounts
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There needs to be evidence that such party controlled the trust,
And but for the trust he would have owned the assets in his own name.
Badenhorst v Badenhorst
There needs to be evidence that such party controlled the trust,
And but for the trust he would have owned the assets in his own name.
Badenhorst v Badenhorst
needs to be evidence that such party controlled the trust,
And but for the trust he would have owned the assets in his own name.
Badenhorst v Badenhorst
4. Is “my” family trust at risk?
“There needs to be evidence that such party controlled the trust, and but for the trust he would have owned the assets in his own name”
Badenhorst v Badenhorst
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Is “my” family trust at risk?
● Trustees are obliged to give effect to the provisions of the trust deed.
● Perform their duties with care skill and diligence which can be expected of a person who manages the affairs of another.
● Exercise their discretion with the necessary objectivity
and independence.
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“A trust is a versatile business and estate planning tool and only one’s imagination
limits the purposes for which trusts may be created”.
Professor W M van der Westhuizen
5. Am I using my family trust effectively?
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Am I using my family trust effectively?
● Some times effectively could mean
terminating the trust
● Vesting the CGT gain?
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6. Will my buy-and-sell arrangements
protect my family?
The purpose of buy-and-sell agreements are to create certainty both for the purchaser and the seller’s surviving family members
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Will my buy-and-sell arrangements protect my family?
1. Agreements not signed
2. Original contracts lost
3. Wrong parties
4. Fixed valuations
5. Outdated values
6. In-community marriages
7. Conflict with will / shareholders agreement
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7. Are my policy beneficiary nominations
up to date ?
LIFE ASSURANCE: Policy Contract
● May nominate anyone (in community
marriages)
● Can save executor’s fees
● Still part of estate for estate duty
● Security cessions
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8. Have I made sufficient provision for
liquidity in my estate?
Liquidity is an essential element of a plan –
It is not the plan
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Have I made sufficient provision for liquidity?
Liquidity (cash in an estate)
The need includes:
Provision for dependants
Settle Debts
Estate expenses
i. Estate Duty
ii. CGT
iii. Executor’s fees
iv. Outstanding taxes
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Have I made sufficient provision for liquidity?
The role of life assurance
1. The correct amount at the right time
2. Usually the most cost effective means of
providing liquidity
3. The capital gains tax advantage
4. Beneficiary nominations
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9. How will my retirement fund benefits
be dealt with?
Section 37 C
● Dependents
● Divorce
● Living annuities - beneficiaries
● Living annuities - divorce
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Saving estate duty
● Maximum retirement age removed
● Estate duty on lump sum removed
● Tables allow for disallowed contributions
● The opportunity to skip a generation
● Reduce the surviving spouse’s estate duty
How will my retirement fund benefits be dealt with?
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Self-assessment / Check Yourself – 10 key questions
1. Do you have a strategic estate plan in place?
2. Do you have a signed, and up to date will in place?
3. Do you use the R3,5 Abatement to best effect?
4. Is “your” family trust at risk?
5. Are you using the family trust effectively?
6. Are your buy-and-sell arrangements going to protect you?
7. Are your policy beneficiary nominations up to date?
8. Is there sufficient liquidity in your estate?
9. How will your retirement fund benefits be dealt with?
10. Will my family know what to do?
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Glacier Offering : Plan to implementation
● estate planning report
● will drafting service ● trust review/report – legal and governance ● professional trustee services
● estate planning aspects of business assurance structures ● estate planning related tax solutions ● executorships and administration of deceased estates
● testamentary trust administration ● offshore fiduciary services – referral basis
….fixed fee based service
CLOSING SLIDE