Fiduciary Services FAQ’s
- If I receive the proceeds of a policy as beneficiary, am I liable for Estate Duty?
- Is my buy and sell policy exempt of estate duty?
- Why do I need a Will & Testament?
- What is a trust?
- Why make use of a testamentary trust for my minor children?
- What is estate planning and what does one want to achieve?
- Will my estate be liable for any taxes after my death?
- Why do I need to appoint an Executor?
- Who should I appoint as Executor of my estate?
If I receive the proceeds of a policy as beneficiary, am I liable for Estate Duty?
Yes, you might be liable for a pro rata share of the estate duty imposed on a deceased estate, should you not comply with the requirements for exemption offered in terms of the Estate Duty Act.
Is my buy and sell policy exempt of estate duty?
Yes, if all the requirements are met in terms of the Estate Duty Act.
Why do I need a Will & Testament?
A Will affords one the opportunity to choose your heirs and appoint an Executor by way of a legal document. By dying intestate, i.e. without leaving a Will, the Law on Intestate Succession prescribes who the heirs to your assets will be.
What is a trust?
Trusts are popular planning tools and are widely used in most jurisdictions in the financial world, including South Africa. It is an agreement between a Founder and Trustees to administer assets for the benefit of beneficiaries.
Why make use of a testamentary trust for my minor children?
The inheritance of a minor will be managed by Trustees of your choice and on the terms and conditions as determined by you. If no testamentary trust is created to take charge of the inheritance of a minor heir, the inheritance is paid to the Guardians Fund with the Master of the High Court and kept until the heir becomes of age.
What is estate planning and what does one want to achieve?
Estate planning is the arrangement of an estate in terms of which the planner’s objectives in dealing with the assets and liabilities are achieved. These objective should make provision for the management of the planner’s estate during his lifetime and thereafter.
Will my estate be liable for any taxes after my death?
Depending on the value of your estate, it may be liable for estate duty and/or capital gains tax, and/or income tax. Death does not exonerate one from taxes.
Why do I need to appoint an Executor?
The Executor is the person who is responsible for the administration of a deceased estate. He collects all the assets of the deceased person’s estate, settles all its debts and transfers the balance to the heirs.
Who should I appoint as Executor of my estate?
Any person may be appointed as Executor of an estate, but the Master of the High Court will insist that a “non-expert” Executor be assisted by a qualified professional.