Consider these five essential parts of good estate planning

Fsp Invest Team, 15 Apr. 2013

Tags: estate planning, estates, good estate planning, protect your wealth with estate planning

“It doesn’t really matter how much money you leave behind; if you don’t plan your estate properly, you could leave your family financially wanting. And worse, it can deprive your loved ones of the life you’ve always wanted them to have, leaving them with more to deal with than just grieving once you’re gone,” writes Karin Iten in the South African Investor. Read on to discover the five vital elements of good estate planning.

“Rich or poor, everyone needs to plan their estates. It can be as simple as drawing up a will in which all your worldly possessions are left to your spouse, or it can be as complex as establishing a local or offshore trust,” says Bryan Hirsch, a veteran financial planner.
According to some estate experts, planning your estate is quite easy if you’re properly prepared.
And all it requires is that you have certain important elements in place to protect your legacy.
Here’s are five essential parts of good estate planning
According to the South African Investor your estate should:
1. Protect the worth of your growth assets. These are assets, such as shares and property, which should provide strong investment returns over the long-term.
2. Reduce exposure to taxes, such as capital gains tax (CGT) and estate duty.
3. Shield assets from forced sale by assessing the liquidity of the estate. “Unless you leave your assets to your spouse, the taxman will believe you’ve disposed of them and your estate will be liable for taxable capital gains. If there isn’t enough cash in the estate to settle your debts, transfer costs, expenses, executor’s and master’s fee, or pay CGT, the executor may have to sell assets to raise some cash. And, in extreme cases, he may have to sell the house you left your family to cover costs,” explains the South African Investor.
4. Limit estate expenses. “Unlike limiting estate duty; this simply means ensuring you pay as little as legally possible,” says the South African Investor.
5. Ensure a smooth transition of your estate on your death.
Remember, “the easiest vehicle to makes sure your estate ticks all five of these boxes is to regularly review your will and set up a Trust ,” advises the South African Investor.

Related QA

Maxhakane asked:
I was dismissed in April and i cannot afford to pay the loans I had with FNB as I'm now earning only UIF. My loan instalments amounts to R6000 a [read more]
Published at 03 Sep. 2016 in: Personal Finance 1 Answer
jeffzoraunye asked:
I would like to know where i can buy cages for quail farming [read more]
Published at 04 Jan. 2016 in: Personal Finance Entrepreneurship 1 Answer
willem2234 asked:
For a novice such as me, this platform is really complicated. They send me a training manual (to a elderly novice) and this is a few pages. It is [read more]
Published at 23 Dec. 2015 in: Personal Finance General 1 Answer
willem2234 asked:
At present you are running a series by Mark Ford. In one of his lessons on how to save money, he says that one of the first things to do is to cut-up [read more]
Published at 23 Dec. 2015 in: Personal Finance Genaral question 1 Answer
d.c.heger asked:
Is there any way one can hold shares privately without paying the monthly A/C Admin fee and only paying the Broker fees when buying or selling. [read more]
Published at 15 Dec. 2015 in: Personal Finance Broker fees 1 Answer




Youtube Twitter Facebook

Connect with us:    

  • Accelerated Investor
  • Accessories
  • Accountancy
  • Accountancy services