Most people have the assumption that their estate only consists of their house or the money in their bank account however, in reality your estate includes much more than just that.

It is important to understand what forms part of your estate as this is essential for estate planning and ensuring that your loved ones are cared for. 

Your estate may consist of the following assets:

1. Immovable property which includes your residential home, vacant land and commercial property, which you own;
2. Movable property such as motor vehicles, furniture, jewellery, firearms and collectables, that has a monetary value;
3. Cash and bank accounts held in any type of bank account;
4. Investment assets such as shares in the JSE, unit trust, bonds and investment portfolios;
5. Business interests that you held in any business;
6. Digital assets such as cryptocurrency and digital wallets;

However, your estate consists of more than just the assets you own, it also consists of all the debts and liabilities you incurred, which needs to be settled before calculating the nett value of your estate.

The most common debts and liabilities include the following:

1. Home loans (mortgage bonds);
2. Vehicle asset finance;
3. Personal loans;
4. Credit card debts and;
5. Tax owed to SARS.

Retirement benefits and life insurance policies

Retirement funds and life insurance policies require special consideration because although these benefits become payable after your death, they do not automatically form part of your estate, the funds have a legal duty to identify and allocate benefits to the nominated beneficiaries or dependants, therefore passing directly to such beneficiaries.

However, in the event that no beneficiary has been nominated the proceeds may form part of your estate.

Most people are amazed to discover that assets such as business interests and digital investments form part of their estate, while certain retirement fund benefits and insurance policies may not.

Conclusion

Proper estate planning requires a clear understanding of what assets you own as well as what liabilities you have and by regularly reviewing your estate you can save your loved one’s significant time, expenses and uncertainty during an already difficult time.