This document discusses estate planning essentials. It notes that estate planning involves decisions about assets and liabilities during one's lifetime and after death. Some key points made include: - An estate plan should ensure the practical and legal feasibility of a client's wishes, minimize estate duty, provide for dependents, and structure business succession plans. - An estate plan may include a will, trusts, life insurance and other arrangements to distribute assets, maintain family members, and address issues like minor maintenance and surviving spouse maintenance. - Estate planning is necessary to avoid issues like an infeasible will, lack of liquidity, unnecessary taxes, and disadvantaged heirs. It aims to fulfill a deceased's wishes and preserve business value.

1. Insurance Financial Planning Retirement Investments Wealth
Estate Planning
Essentials
Nerissa Rother
2nd November 2017

2. Estate Planning involves your clients decisions regarding what happens to their
assets and liabilities during their lifetime, as well as after death.
What is Estate Planning ???
Estate Planning Essentials

3.  The Will is not feasible
 There is a lack of cash in the estate
 Assets have to be sold due to liquidity shortfalls
 Unnecessary estate duty and CGT have to be paid
 Heirs may be at a disadvantage
 Wishes of the deceased are not feasible
 Value of a practice or business interests is lost to the estate because there
are no buyers at market value
Why is it necessary?
Estate Planning Essentials

4.  Practical and legal feasibility of the client’s wishes
 Lowest possible estate duty
 Provision for dependents
 Saving on Executor’s fees
 Utilization of allowable tax rebates
 Structuring of business succession plans
 Protection of minors and non-eligible heirs
 Curbing estate growth
What Does an Estate Plan Entail?
Estate Planning Essentials

5. “Forget about estate duty, focus on your family”
Matthew Lester
Opportunities
Estate Planning Essentials
 Maintenance for minors
 Maintenance for surviving spouse
 Extended family

6. Opportunities
Estate Planning Essentials
3. Marital status / Huwelikstaat
Married
Getroud
In community of
property
In gemeenskap
van goedere
Married
Getroud
Out of community
of property
Buite gemeenskap
van goedere
Without
accrual
Sonder
aanwas
With accrual
Met aanwas
Divorced
Geskei
Never married
Nooit getroud
Widower
Wewenaar
Widow
Weduwee
Aanspreeklik vir
onderhoud/ Liable
for maintenance  Asset
 Liability

7. Opportunities
Estate Planning Essentials
Never married……..SPOUSE
“In relation to any deceased person, includes a person who at the time of death of
such deceased person was the partner of such person-
a) in a marriage or customary union recognised in terms of the laws of the Republic;
b) in union recognised as a marriage in accordance with the tenets of any religion; or
c) in a same-sex or heterosexual union which the Commissioner is satisfied is
intended to be permanent.
Provided that a marriage or union contemplated in par (b) or (c) shall, in the
absence of proof to the contrary, be deemed as to be a marriage or union
“without community of property.”

8. Opportunities
Estate Planning Essentials
Is it Rehabilitative ??
Maintenance for minors?

9. Business
Interests
Contingent
Liability
Buy & Sell
Credit &
debit loan
accounts
Key man
Opportunities
Estate Planning Essentials

10. Family Owned Business….
Estate Planning Essentials
Relative in relation to the deceased within the third degree of consanguinity
deceased
1parents2grand
parents
3
uncle 4 cousin
2
brother/
sister 3
niece/
nephew
1
son/
daughter
grand
children2
3
great
grand
children
 Spouses included
 Child shall be deemed to be related to the
adoptive parent in the first degree of
consanguinity

11. Section 7 C
 Review existing Discretionary trusts with interest –free or low interest loans
 Amend trust deeds accordingly
 Make provision for the outstanding loan account
Opportunities
Estate Planning Essentials

12. Section 4q deduction
Roll – over of R3 500 000 abatement
Previously disallowed contributions to retirement annuities
Opportunities
Estate Planning Essentials

13. Business Opportunities from a Will
SFA Legal Services
7. Liabilities / Laste
Testator first dying
Testateur
eersterwende
R-value / R-waarde
Testatrix first
dying
Testatrise
eersterwende
R-value / R-
waarde
Verbande/Mortgage bonds
Bank overdrafts
Oortrokke bankrekenings
Lenings/huurkope
Loans/hire purchase
Borgskappe / Suretyships
LIQUIDITY
SHORTFALL!!!!

14. questions

15. thank you