2023 has arrived and we are enjoying a “mask-less freedom” in South Africa. We have read a book or two that was on our reading list over the holidays on rainy days at the coast, we have indulged in a good dose of vitamin D in the summer sun, ate too much over the festive season, have reflected on last year, and have already taken our running shoes for a couple of runs or walks.
Looking forward to the new year, we should take some time to review our estate plan.
Are we thinking differently about our long-term objectives in a post pandemic age?
Have the goal posts shifted?
Do some of our family members, close friends, or preferential charities find themselves under financial strain? Are we in a position to assist them in any way?
Have our children/grandchildren or godchildren left school with eyes set on further studies for which they may need financial assistance?
Do we have an elderly parent who is now alone as his/her life partner passed away, and who needs additional love and care?
If you have not considered the following in your estate plan, you may want to do so now:
- How you are married and the effect thereof when you pass away: An accrual claim against your estate is, for example, settled before bequests can be paid to your heirs. A spouse may receive the accrual claim, as well as the bequests to them in your will;
- Where your assets are situated and the different laws applicable to your estate as a result thereof: The laws differ between countries, for example the requirements for your will to be validly applicable to those assets, and when and if probate is required in that country before the assets can be transferred to your heirs;
- Where your children live and where they are tax resident: they may be taxed heavily in that country on distributions from a SA trust for example;
- Whether your children are still minors: non-SA assets bequeathed to a SA testamentary trust for the benefit of minors may have to be repatriated to SA for the trust to hold it;
- Nomination of guardians to your minor children in your will: discussions should ideally be held with the nominated guardians. A letter of wishes can be signed, addressed to them, with your wishes as to the upbringing and the use of their inheritance for your children.
Please email me at marteen@fidelisvox.co.za if you want me to assist you with your estate plan or your questions about any of the above, and I will help you with pleasure.
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)