Do you know how CGT will affect your estate?
Capital Gains Tax is just one of the expenses your estate will have to pay before your heirs receive anything!Very few people have an idea of the actual size of their estates. As the years pass, they build up their assets and provide for their families, but no proper arrangements are ever made to see that the right people benefit and that the family does not suffer financially, when something happens.
An Estate Plan addresses the effects of all the expenses due on your death.
The hidden costs of dying.
Even if no estate duty is levied, CGT - bond settlement - rates - death-bed costs - transfer costs - executor and administration fees - funeral costs and Master's fees are some costs that your estate must paid.In addition, income tax - debts - overdrafts - credit cards - HP and lease - and security cession upgrading costs may arise.
All before your heirs receive a cent!
Has your estate enough money to meet these costs?
The Objectives Estate Planning.
Estate planning is often confused with death planning. However, estate planning is about:- Living and enjoying the benefits of the wealth you are building up in your estate;
- Knowing that you are protecting your wealth against inflation and ever changing taxes;
- A carefree retirement;
- Peace of mind, knowing that your heirs will, one day, derive the maximum benefit from your estate and that their inheritances will not be wasted on unnecessary taxes and administration expenses.
Effective Estate Planning does requires an expert approach.
Developing the best possible estate plan for you, requires the right combination of experience, knowledge and innovation.
The Estate Planning process consists of:
- A thorough analysis of your current position;
- A careful assessment of all the factors that have the potential to reduce the value of your estate;
- The development of YOUR strategy aimed at eliminating these factors.
The implementation of your plan.
Through the use of Legal Entities you could;
- Reduce personal liability and protect assets for future generations;
- Hold growth assets and help minimise estate duty tax.
These entities include Inter Vivos Trusts, Close Corporations, Private Companies or a combination of these.
My Estate Planning service will provide you with access to these entities both locally and offshore.
Your Will
Even the most carefully structured estate plan will fail without a properly drafted will.An up to date, valid, signed will, is an integral part of your estate plan.
It will ensure that your assets are distributed according to your wishes without unnecessary delays, thereby ensuring your peace of mind.
Is your will up to date?
Do you even have one?
After all it is probably the most important document you will ever sign!
What Estate Planning can do for you
In order to be truly effective in preventing your hard-earned assets being lost, your estate plan should:- Minimise estate duties and other taxes;
- Provide immediate and adequate income and capital for your dependants in the event of death or disability;
- Allow sufficient liquidity to cover unforeseen costs;
- Be flexible enough to adapt to changes in the legal environment;
- Adapt easily to any changes in your personal circumstances;
- Offer secure protection of your assets against insolvency;
- Simplify the administration of your estate.
Like most people you may think estate planning only requires a will, but it requires so much more!
What is really involved?
Your estate plan depends upon your circumstances. Your goals and wishes are important, along with the ongoing security of your family. You must ask yourself:- Who should administer my estate?
- Who are my heirs and what should they get?
- Who should be the guardian of my minor children and can they afford to take on the responsibility?
- How can estate duty taxes and current income taxes be reduced?
- How will my executor pay the any taxes due?
- How will my spouse/partner control my assets when I am no longer here?
- How will I care for myself and my family, if I cannot earn an income because of a disability or illness?
Grieving for survivors is a natural process, but you can help them get through this by having a proper estate plan.
Remember, death is not the only event to plan for - illness or disability can be equally devastating.
If you have the correct instructions in place, both your and your family's financial future is secure.
Who should help me with my estate plan?
Use me because you need a professional with experience in this field.Your attorney and accountant need to be involved as well.
A structured action plan will help you track your financial activities towards the real, final goal, a comfortable retirement!
the Now ask yourself - Is my Estate Liquid?
- Can I meet my liabilities and estate duty or will assets I leave to heirs have to be sold to realise cash? Liabilities such as credit cards, income tax, VAT and executor fees.
- If I were to die tomorrow, will my family be able to continue without financial difficulties?
- Will my wife/husband have an income? Will it be enough?
- Will my family have an income while my estate is being wound up?
- Is there provision for my children's education fees?
- Can my business continue or will it have to close? If so, where will my family get income?
- How does my marriage affect my estate?
Estate planning is a crucial part of your personal financial security. Please do not neglect it!
I offer a comprehensive Estate Planning analysis and because it takes a great deal of time to fully cover all the options you may have, I charge a fee depending on the complexity of your situation.Should you place any investments through me, as a result of the analysis, I will happily negotiate the fee.
A second opinion costs nothing yet without it, may cost you everything!
Contact me and we can work out an affordable plan for you.
What if a disability STOPS your income?
Peter Pyburn - Authorised Financial Services Provider, fully licensed to render financial services since 1991. Death and Disability Planning; Retirement Planning; Investment Planning; Healthcare and Estate Planning.
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Last update: October 3, 2024