Your wishes?

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CityPress - - The Good Guide -

Wills, like life cover, can make peo­ple very un­com­fort­able. In that doc­u­ment, we have to face the re­al­ity that death is in­evitable and some­thing we have to pre­pare for. But if you’ve ever ex­pe­ri­enced the fi­nan­cial chaos that en­sues when some­one dies with­out a will, you will know that, for the sake of your loved ones, it is a nec­es­sary doc­u­ment. This is es­pe­cially true when it comes to par­ents with young chil­dren, such as Dipolelo and Iz­i­man­gal­iso, as well as Elz­abe with her four fos­ter kids. Your will is the way you can make pro­vi­sion for them ac­cord­ing to your wishes.

Even if, like Tumelo and Om­phile, you are sin­gle, or, like Charles and his wife, have no chil­dren, a will can as­sist in wind­ing up your es­tate and save your fam­ily mem­bers an im­mense ad­min­is­tra­tive headache at an emo­tional time.

All wills should be as sim­ple as pos­si­ble so that there are no in­ter­pre­ta­tion is­sues. If you have chil­dren, there are ad­di­tional con­sid­er­a­tions, both in terms of pro­vid­ing for them and the tax im­pli­ca­tions if you leave money to them di­rectly. It is worth pay­ing for a pro­fes­sional will to be drawn up in this case rather than us­ing a stan­dard will. a di­rec­tor of fi­nance

Every­thing Om­phile and Tumelo have to con­sider must form part of Iz­i­man­gal­iso’s will, but she also has to make pro­vi­sion for her chil­dren.

As Iz­i­man­gal­iso is mar­ried, she could leave all her as­sets to her hus­band, who would pay no es­tate duty. This does not re­quire any spe­cial struc­ture to house the funds for mi­nors. Al­ter­na­tively, she could take ad­van­tage of the tax abate­ment (no es­tate duty ap­plies on the first R3.5 mil­lion of one’s es­tate) and leave money to her chil­dren tax-free. This could ring-fence money for them, should her hus­band re­marry.

Mar­riage con­tract. She would need to take into con­sid­er­a­tion that her mar­riage con­tract could limit how much of her es­tate she is able to leave di­rectly to her chil­dren. As she is mar­ried in com­mu­nity of prop­erty, her hus­band is en­ti­tled to 50% of her es­tate, so she could only leave half of the joint es­tate to her kids.

Tes­ta­men­tary trust. If she de­cided to leave money di­rectly to her chil­dren, she needs to de­cide if the in­her­i­tance goes straight to the mi­nor chil­dren or into a trust. A tes­ta­men­tary trust is one formed upon your death and houses funds un­til such time as your child at­tains ei­ther the age of ma­jor­ity (18), or some other age pre­de­ter­mined by the par­ent. It is im­por­tant to keep in mind that some­one else (trustees) is look­ing af­ter the trust, and this comes with costs.

Guardian. If you have young chil­dren, you need to stip­u­late what will hap­pen to them if both par­ents die, an im­por­tant re­quire­ment for sin­gle par­ents. You can set out a let­ter of wishes in your will around cer­tain re­quire­ments, such as their ed­u­ca­tion.

Child’s mar­riage. En­sure your will con­tains a clause that any as­sets left to your kids will not form part of that child’s mat­ri­mo­nial regime. If, for ex­am­ple, you left a prop­erty to your daugh­ter, who then gets mar­ried in com­mu­nity of prop­erty, in­clud­ing this clause in your will would en­sure that the prop­erty will not form part of your daugh­ter’s joint mar­i­tal es­tate.

Mar­ried with no chil­dren:

an agri­cul­tural lec­turer

If he elects to leave all his as­sets to his wife, the will would be sim­ple and con­tain the re­quire­ments for Om­phile and Tumelo. He would need an al­ter­na­tive heir should he and his wife pass away at the same time.

CHARLES

OM­PHILE

IZ­I­MAN­GAL­ISO

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