There is a sense of pride knowing that you have
accumulated valuable assets to pass on to the next generation.
There is also fear of losing control of the wealth you
worked so hard to build.
How do you make sure your wealth gets distributed to the
people you care about in accordance with your intention?
Accordingly it has been stated that the easiest way to
achieve your aims is to go the route of estate planning.
WHAT IS
ESTATE PLANNING?
Estate planning is the process of anticipating and
arranging during a person’s life for the management and disposal of that
person’s estate during the person’s life and after death.
It will allow the protection of your loved ones from
legal hassles and financial uncertainty after your death.
WHAT
ESTATE PLANNING MEANS
It is the act of preparing for the transfer of a person’s
wealth and assets after his/her death.
HOW DO YOU
DO ESTATE PLANNING?
The most important estate planning issues to consider
are:
(a) Making a
Will/Testament;
(b) Consider a
Trust.
(a)
WILL /
TESTAMENT:
A Will is a written document in which a person called a
Testator/Testatrix, voluntarily stipulates how his/her estate will be
distributed after his/her death.
Having a Will is the cornerstone of any estate plan.
You are required to review and update your Will.
(b)
TRUST:
What is a Trust?
A Trust is a legal way to hold and protect your assets
for the future.
A document called a trust deed is the set of rules for
the operation of the trust. It sets out
who the beneficiaries are, who the trustees are and how the trust will be
administered.
Trustees are appointed to administer monies inherited by
heirs.
The appointment of Trustees is crucial for inheritance by
children.
Trusts are legal agreements through which you set aside
assets and money to be held and administered on your behalf for the benefit of
the people as beneficiaries.
The easiest way to achieve your aims is through the use
of a Trust incorporated into your Will.
Broadly speaking there are a number of ways how Trust
types in South Africa can be classified, the way in which they are formed and
the rights they give to the beneficiaries.
CONCLUSION:
This article is my attempt to bring to light some of the
issues, not in detail, of estate planning which can help you to understand and
better preserve the assets you have
worked so hard to accumulate over your lifetime.
Should you decide to pursue the route of estate planning,
I will advise you to seek the advice of a knowledgeable Attorney.