Estate Planning

When planning your estate, there are, as usual, many issues to consider. The first and most vital is, of course, you will and testament. This must be in order to ensure your loved ones are taken care of after your passing. Estate planning is an essential part of financial planning. Your "estate" refers to everything you own (your assets and any assets deemed to be yours) and your liabilities. Estate planning is all about how you intend to dispose of your assets after passing away.

The first step when planning your estate is by determining what you have and what you don't. These include:

* Your current and future assets.
* Moveable, immoveable and incorporeal (trusts, shares etc) assets.
* "Deemed property" such as life policies and retirement annuities.
* Liabilities which includes your debt and maintenance.
* Your tax commitments at death.

The list above is a short one and a financial planner will be able to assist you further in determining exactly what will be left of your estate after your passing.

After you have determined what your estate is worth, you need to draw up a final will and testament. If you die without a will, your assets (less your liabilities) are divided among your relatives according to a legal formula.

Keeping your will up to date is important as you circumstances may change. Taxation laws may change and various other factors could change. Most banks draw up and execute wills, or you can go to a lawyer or your financial advisor. You can expect to pay upwards of R250 to have a will drawn up. Your financial advisor may sometimes include the cost of drawing up your will in their fee/commission.