Everything Wills and Estates

Everything Wills and Estates The loss of a loved one is never easy. Being prepared for the inevitable is.

We make you understand your Will and costs upon passing and assist in assuring/ensuring and insuring that your family does not have a shortfall when a loved one comes to pass.

75% of South Africans don't have a valid Will. 75% and more don't know what is owed in Estate Fees when they pass. Don't...
19/05/2022

75% of South Africans don't have a valid Will. 75% and more don't know what is owed in Estate Fees when they pass. Don't leave your family in financial distress when you pass. Contact us today.

Knowledge is power.
14/05/2022

Knowledge is power.

Where the deceased has nominated a beneficiary on their policy, the proceeds of that policy will be paid out directly to that person.

Not Estate related, but always good to know how this affects loans, interest rates, house bonds, monthly debt repayments...
14/05/2022

Not Estate related, but always good to know how this affects loans, interest rates, house bonds, monthly debt repayments ect.

'We expect the Sarb to step up the pace of policy normalisation in its May MPC meeting, delivering a 50 bps rate hike to 4.75%,' said Jeffrey Schultz.

Estate Planning: Agricultural LandOnly 1 person can own the land, this is according to Subdivision of Agricultural Land ...
13/05/2022

Estate Planning: Agricultural Land

Only 1 person can own the land, this is according to Subdivision of Agricultural Land Act 70 of 1970. The Act prohibits the subdivision of agricultural land without the consent of the Minister of Agriculture. If the Minister of Agriculture declines the request, the Will part relating to the distribution of the farm land can not be carried out and the children/heirs to the farm must decide who the sole owner of the farm will be.

Heirs/Beneficiaries of the farm can attempt the following:
1) Sell the farm
2) Transfer the Farm to a Trust or create a Pty (Ltd). In this case the heirs/beneficiaries can be Trustees or Shareholder and benefit from the farm.
3)Heirs/Beneficiaries can buy one another out.

What happens if you do not have a Signed Will?Note: A Will must comply with the provisions of Section 2(1)(a) of the Act...
13/05/2022

What happens if you do not have a Signed Will?

Note: A Will must comply with the provisions of Section 2(1)(a) of the Act.

1) Your Estate will be distributed according to South African Law and your beneficiaries might not inherit what you wanted them to inherit.
2) No signed Will can result in ugly family arguments regarding who gets what.
3) If you do not have an Executor nominated, the Government is essentially in control of the administration of the Estate. This can also prolong the winding up of the Estate.
4) So many times couples divorce without updating their Wills and in the event of passing, the ex-spouse inherits and not the current partner or spouse.
5) No Will means you have not appointed your choice of Guardians for your child(ren).
6) Your child's inheritance can either be controlled by the Guardian who can spend it anyway pleased or the inheritance is run by the Governments Guardian Fund

Types of Marriages?The most common marriages are in community of property, out of community of property WITH the accrual...
13/05/2022

Types of Marriages?

The most common marriages are in community of property, out of community of property WITH the accrual and out of community of property WITHOUT the accrual.

1) In community of property: All the assets of the married couple belong to them jointly regardless if the asset was purchased before marriage. In the event of sequestration, the joint estate is sequestrated.

2) Out of community WITH the Accrual: This automatically applies to marriages out of community unless you excluded the accrual. During the marriage each spouse retains their own estate, builds their own personal estates and are also liable for their own debts. Upon divorce or death, the value of the assets obtained during the marriage (the accrual) will be shared equally. The Act allows each spouse to share in the accrual but also protects creditors.

3) Out of community WITHOUT the Accrual: ALL movable and immovable property owned before marriage and ALL property acquired/accumulated during the marriage, belongs to the person who accumulated it. The same applies for debts and liabilities, and each spouse may make their own arrangements regarding the disposal of their estate in their Last Will and Testament

Transfer Costs of immovable property and Transfer DutyThe Executor may/must transfer the immovable property to the beque...
13/05/2022

Transfer Costs of immovable property and Transfer Duty

The Executor may/must transfer the immovable property to the bequeathed beneficiary as per the Last Will and Testament of the deceased person. Transfer costs will be paid by the estate (depends on liquidity/cash in the estate) and transfer duty will not apply as the immovable asset is not being sold.

If the surviving spouse takes over the property as per section 38, the spouse will be held liable for the transfer costs. Transfer Duty does not apply in this case.

If the immovable property is sold to someone else, it is customary for the purchaser to pay the transfer costs. Note that when property is sold from the estate, transfer duty will apply and is payable by the purchaser.

The transfer of property is when the ownership of a property is changed from one person to another person. This occurs when a property is sold or when the owner of the property dies and leaves the property to another person.

TRUST FEES and how it impacts your Child(ren) inheritance – (1 minute read)See example: R414 000 Trust FeesHaving a Test...
13/05/2022

TRUST FEES and how it impacts your Child(ren) inheritance – (1 minute read)

See example: R414 000 Trust Fees
Having a Testamentary Trust in your Will is vital if you have minor children. Having these fees covered are even more important. Leaving your children's inheritance to family to handle is NOT A SMART move. BIG NO.

Example: House R1 000 000 and Life Policy payable to Estate R2 000 000. Child 8 years old and trust ends at age 25. Trust will run for 17 years. Just to administer the Trust for 17 years can cost R414 538. That means your child has not only lost out on ± R180 000 worth of Estate Fees (Executor, Transfer of property, Masters Fees ect), but your child has lost out on an additional R414 538.00 worth of Trust Fees calculated up until the age of 25.

Trust Fees can vary from company to company. Trustees can charge between R1000 to R3000 per hour. R2000 (2 hours per month) * 12 = R24 000. R24 000 * 17 years for example gives you R408 000.
Some trustees can charge a percentage of the Estate Value per year. R3 000 000 Estate value, Trustee Fee percentage 0.008%. R3 000 000 * 0.008% = R24 000. R24 000 * 17 years = R408 000.

The Trust Property Control Act does not determine Trustee remuneration

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