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

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