Wills

Why a will is important:

• To avoid the application of the laws pertaining to intestate succession.
• To allow the client to choose his/her heirs.
• To prescribe the conditions upon which an asset is to be inherited.
• To appoint executors and trustees who are responsible for the smooth and efficient transfer and/or administration of assets on the death of a client.
• To apply safeguards to protect an heir's inheritance.
• To avoid lengthy delays in the administration of an estate and transfer of assets.

Anyone can draft a will

Each individual over the age of 16 years can draft a will to ensure that his/her deceased estate is liquidated in terms of the Deceased Estates Act and not in terms of the provisions of the Law of Intestate Succession. We are of the opinion that this should be the final step in a holistic estate planning exercise to ensure that the estate planner enjoys all the available income tax and estate duty concessions and that heirs receive their inheritance in the most tax efficient manner.

We require a complete personal and financial profile before the will is prepared, so that all important aspects are taken into account.

The following aspects should be considered

• Foreign Estate
  Care must be taken to avoid conflict should you have foreign assets and a separate will dealing with onshore and offshore assets as probate formalities differ from country to country.
• Burial requests
  This can be expressed as a wish in your will, although your relatives should be aware of your specific wishes in this regard.
• Maintenance commitments
  These could lead to substantial claims against your estate if not adequately provided for. The creation of a dedicated testamentary trust can be most effective in such instances.
• Substitution
  Should a beneficiary predecease you or die simultaneously with you, who should benefit in his or her stead?
• Business interests
  Provisions should be made for the disposal of your interests as a going concern. Determine reasonable funding arrangements for your business partner so that he or she can pay the purchase consideration to your estate and beneficiaries with relative ease.
• Equalisation
  Make use of the principle of a bequest price if an asset bequeathed to one beneficiary is worth more than the share of another beneficiary.
• Awards to minor beneficiaries
  In the case of movables, provide for a hand-over to their guardian until they attain their majority, in the case of cash awards, provide for a testamentary trust.
• Age restrictions
  A beneficiary can only receive his or her inheritance upon attaining majority (currently 18 years of age) - some clients stagger the distribution, for example 50% at age 21 and the balance at age 25.
• Guardianship
  Where children are minors, this nomination must be carefully considered - also provide for substitution in case the nominee cannot accept the appointment for whatever reason.
• Inter Vivos Trust
  The existence of such a trust and any loan owing to you must be taken into account - Be aware of the capital gains tax implications.

Fees

A basic fee of R500 plus VAT, for a will is levied if PSG Konsult Trust is nominated as executor. This fee is increased to R850 plus VAT if another institution or person is nominated as executor.