Estate Planning: Expert Advice on Everything from Executor Fees to Estate Duty
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2 سال پیش
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Understand the critical role played
Understand the critical role played by the Executor in winding up of deceased estates and know how Estate duty is calculated. Get expert advice and answers to your estate planning questions from an accredited Financial Adviser, visit: https://www.oldmutual.co.za/personal/... or call 0860 60 60 60.
Watch Old Mutual’s short, informative video to build your understanding of the key elements of estate planning. What exactly is the role of the Executor? How is Estate Duty is calculated and paid? How does your marital regime affect the administration of your estate?
These and other questions are answered in the video by Shakira Bodasing, a Senior Legal Advisor, at Old Mutual. In the process she also unpacks some of the legalese and complex jargon surrounding estate planning.
Whether you are preparing or reviewing your Last Will and Testament, or planning how to structure and distribute your estate among your dependents after your death, these legal explanations from Old Mutual will prove very useful.
THE IMPORTANT ROE OF THE EXECUTOR OF YOUR ESTATE
The Executor of an estate is the individual or fiduciary organisations you nominate in your Will to administer the estate and ensure that your assets are distributed according to your wishes. The Executor needs to be highly trusted by you and your family, and also willing and able to perform the duties of an Executor.
They will play a key role in protecting your loved ones’ financial wellbeing when you are no longer around.
As Bodasing explains in the video , it is normally also the Executor who is responsible for the payment of the Estate Duty from the estate.
HOW IS ESTATE DUTY CALCULATED?
This can be difficult and complex, Bodasing says. The value of all property and deemed property must be added to calculate the gross value of the estate. Deemed property is regarded as being “property” as its payment is triggered by one’s death. An example of this is life insurance policy on your life which pays out when you die.
Thereafter all expenses in the deceased estate need to be deducted. This includes administrative expenses, funeral expenses, debts incurred by the deceased and other allowable deductions. Once all these deductions have been made, the net value of the estate will be clear.
“Finally, from the net value of the estate you are allowed to deduct a R3.5 million abatement, which is afforded to all estates,” says Bodasing. “And the balance is the dutiable estate for Estate Duty purposes.”
This means that estates that have a net value less than R3.5 million attract no Estate Duty.
HOW DOES YOUR MARITAL REGIME IMPACT YOUR ESTATE?
There are three marital regimes in South African Civil Law i.e. In Community of Property; or Out of Community of Property, and Out of Community of Property with Accrual- each has an impact on how your Estate Duty is calculated.
In the video Bodasing explains:
• If you are married In Community of Property, this means, practically speaking, that the estate of both spouses is administered jointly. Following the death of one spouse, the surviving spouse has a 50% claim on the joint estate.
• If you are married Out of Community of Property with Accrual, the estate of the spouse with the smaller accrual has a claim against the other spouse’s estate
• If you are married Out of Community of Property without accrual, it is relatively simple: what’s yours is yours, and what’s mine is mine, and the estate will be administered separately. Each spouse retains their own separate estate.
Watch Old Mutual’s short, informative video to build your understanding of the key elements of estate planning. What exactly is the role of the Executor? How is Estate Duty is calculated and paid? How does your marital regime affect the administration of your estate?
These and other questions are answered in the video by Shakira Bodasing, a Senior Legal Advisor, at Old Mutual. In the process she also unpacks some of the legalese and complex jargon surrounding estate planning.
Whether you are preparing or reviewing your Last Will and Testament, or planning how to structure and distribute your estate among your dependents after your death, these legal explanations from Old Mutual will prove very useful.
THE IMPORTANT ROE OF THE EXECUTOR OF YOUR ESTATE
The Executor of an estate is the individual or fiduciary organisations you nominate in your Will to administer the estate and ensure that your assets are distributed according to your wishes. The Executor needs to be highly trusted by you and your family, and also willing and able to perform the duties of an Executor.
They will play a key role in protecting your loved ones’ financial wellbeing when you are no longer around.
As Bodasing explains in the video , it is normally also the Executor who is responsible for the payment of the Estate Duty from the estate.
HOW IS ESTATE DUTY CALCULATED?
This can be difficult and complex, Bodasing says. The value of all property and deemed property must be added to calculate the gross value of the estate. Deemed property is regarded as being “property” as its payment is triggered by one’s death. An example of this is life insurance policy on your life which pays out when you die.
Thereafter all expenses in the deceased estate need to be deducted. This includes administrative expenses, funeral expenses, debts incurred by the deceased and other allowable deductions. Once all these deductions have been made, the net value of the estate will be clear.
“Finally, from the net value of the estate you are allowed to deduct a R3.5 million abatement, which is afforded to all estates,” says Bodasing. “And the balance is the dutiable estate for Estate Duty purposes.”
This means that estates that have a net value less than R3.5 million attract no Estate Duty.
HOW DOES YOUR MARITAL REGIME IMPACT YOUR ESTATE?
There are three marital regimes in South African Civil Law i.e. In Community of Property; or Out of Community of Property, and Out of Community of Property with Accrual- each has an impact on how your Estate Duty is calculated.
In the video Bodasing explains:
• If you are married In Community of Property, this means, practically speaking, that the estate of both spouses is administered jointly. Following the death of one spouse, the surviving spouse has a 50% claim on the joint estate.
• If you are married Out of Community of Property with Accrual, the estate of the spouse with the smaller accrual has a claim against the other spouse’s estate
• If you are married Out of Community of Property without accrual, it is relatively simple: what’s yours is yours, and what’s mine is mine, and the estate will be administered separately. Each spouse retains their own separate estate.
2 سال پیش
در تاریخ 1401/06/28 منتشر شده
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