1. REASONS TO
INVEST IN AN
ENDOWMENT
GLACIER FINANCIAL SOLUTIONS (PTY) LTD IS A LICENSED FINANCIAL SERVICES PROVIDER
Contact us
This document is intended for use by clients, alongside their financial
intermediary. For more information please visit www.glacier.co.za or speak
to your financial intermediary
Tel: +27 21 917 9002 / 0860 452 364
Fax: +27 21 947 9210
Email: client.services@glacier.co.za
Twitter: @GlacierBySanlam
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What is an
endowment?
Who can invest?
An investment policy (with a minimum
five-year term) with tax advantages for
affluent individuals and their trusts.
The Glacier endowment is available
to individuals as well as trusts with
individuals as beneficiaries.
Interest income
declared within the
endowment is taxed at
30%, resulting in a tax
saving for investors
with a marginal tax rate
higher than this.
Capital gains tax (CGT)
rate is 10%, compared
with a maximum rate of
13.67% for investors.
No tax administration
necessary as income
tax & CGT are
recovered within the
policy.
Tax-efficient
Saving on executor’s
fees if a beneficiary has
been appointed.
Creates liquidity in
your estate. Payment of
death benefit does not
depend on the estate
being wound up. If a
beneficiary has been
nominated, payment
can be made before
the estate is wound up.
Estate planning
advantages
Choose from a wide
range of underlying
investments. Not
restricted to maximum
levels of equities and
offshore investments.
Can invest directly in a
share portfolio as one
of the underlying
investments.
Transparency
and flexibility
The entire value of the
endowment is
protected against
creditors after three
years, provided certain
criteria are met.
Insolvency
protection
During the first five years –
called the restriction period -
there are limits on withdrawals
from the policy. The restriction
period will extend beyond five
years if the contributions in the
second year are more than 120%
of year one’s contributions, or if
the contributions in any year
thereafter are more than 120%
of the highest of the previous
two year’s contributions. In this
case, a new five-year restriction
period starts.
Can make one withdrawal and
one zero-interest loan during a
restriction period. The total of
the withdrawal and loan amount
is limited in the first five years
to premiums paid plus 5%
compound interest per year.
Regular or ad-hoc withdrawals
are allowed if the policy is not in
a restriction period.
Access
to funds
WHY SELECT AN ENDOWMENT?