Connie Bruwer from PC Bruwer and Partners gives advice on this important topic.

Question:  A customer wrote that her son died without leaving a will. She wants to know what her grandson’s legal rights are. If I understand the letter correctly, the facts are more or less as follows: Her son had a relationship with someone with whom he had a son. He and the child’s mother was never married and she was later married to someone else. The child is now an adult. His mother and her lawyer is now demanding a share of the deceased’s estate. The client wants to know what her grandson’s rights are.

Connie:  First something in general and then we will look at the facts of this case. If someone dies intestate, his assets are dealt with in terms of intestate inheritance laws. This law requires that certain steps are taken and dictates who and how much one might inherit from the estate after debt obligations and other liabilities and taxes have been recovered.

If the deceased were married in community of property, the estate will be divided in two since he only owned half of it. One half remains the property of the wife (if she is the survivor) and the husband’s assets (if he is deceased) are then seen as intestate.

Then the “rule” follows that the assets should be divided according to how many children there are plus if he was married. The net estate is divided equally between the children and the wife.

If the woman’s share is less than the amount to be determined by the minister, she should at least receive a minimum amount. Currently the amount is R125 000.

If there was no spouse, the full estate will go to the children in equal shares. If one of the children dies, the children of that child will receive his / her share. If there are no children, everything will be divided in equal shares and will go to the parents etc. – always to the immediate family. Where there are no next of kin, it will be forfeited to the state after 30 years.

Therefore, the first question in our case will be: Was the man married?

Question:  How is a marriage interpreted nowadays?

Connie:  In today’s world marriage is widely interpreted, but from the client’s letter it seems to me the woman was married to someone else. I think it would be safe to assume that he was not married to her.

It seems that there were no other children, thus the son to whom the customer is referring to, seems to be the sole legal heir. According to the intestate inheritance laws he will be the only one that will have a claim to his father’s net assets. In other words, he should get everything that his father owned. The fact that the woman is his biological mother is not grounds enough for her to be a part of the estate claim.

It is of course interesting that if she dies without a will, the son can also claim her estate on the basis that he was her child, unless he is adopted by someone else.

Either way, I do not know on what grounds the woman is claiming a share of the estate. From the information, it seems that it could not be for child support and the fact that you slept with a man, does not give you a right to his estate.

I suggest the grandson goes and see the Master of the Court (a good lawyer would certainly be better, but more expensive) and try to sort this thing out, because, according to your information, he is the only legal heir and the mother’s claim appears to be her taking a chance.

The post The importance of wills first appeared on PC Bruwer & Partners / Vennote.

Let’s face it…no one likes to think about death. But, like taxes, it is a certainty. Unlike death, though, with proper planning, you can structure your estate to avoid some of the roughest blow of the taxman and ensure your wealth stays in the family.

Connie Bruwer, Managing Director of PC Bruwer and Partners, and also an expert in the area of wills, gives an explanation below of the importance and the right way to plan your will and estate.

Your will–the cornerstone of your estate plan

A will is the most important document in your estate plan. It states how and to whom your possessions will be distributed when you die. It’s also the document most commonly challenged in court. Because of this, you need to have your will be crystal clear on what happens to you and your estate upon your death. Regardless of its scope, your will should do the following:

  Annul any earlier wills;

  Provide for paying debts and funeral expenses;

  Specify how you want property distributed and when;

  Name beneficiaries;

  Specify charitable bequests;

  Name executor, trustee(s) and guardian(s).

Peace of Mind, Control and Privacy: The Power of a Will

A will can provide for peace of mind. You can sit back and enjoy life without worrying about what would become of your spouse, your family and your estate, should something unforeseen happen to you. A will also gives you control. You decide where your property will go. And you decide on the people who will ensure that your wishes are carried out, such as an executor, trustee (s) and guardian (s) who will settle your estate and manage and distribute your assets.

  The Executor: Be sure to list an executor in your will. The executor is the person who makes certain all the legal and financial issues are taken care of in addition to assuring that the wishes articulated in your will are carried out. They must work with the courts, banks, insurance companies, accountants, lawyers and all beneficiaries.

  The Trustee and Guardian: You may also wish to choose additional trustees and/or guardians as necessary. A trustee oversees the terms of any trusts you may have established while a guardian is legally authorized to take care of any surviving minors or those that cannot take care of themselves due to mental and/or physical handicaps. A will can also provide a measure of privacy to ease the sting of probate. Upon your death, your estate goes to probate, and without a will, your affairs all become a matter of public record. Anyone can know your business and that of your spouse or family. The sooner, quicker and cleaner you can get through probate, the better

The Probate Process

Planning your will is comparatively straightforward. The problems arise after you have die. Following your death, your will must go through a process known as probate. This legal process involves validating the deceased’s will, collecting the deceased’s assets, liquidating the debt, paying necessary taxes and distributing property to heirs. It isn’t necessarily a problem transferring property under the probate laws. There are, however, grounds for avoiding the probate process.

Making Probate Easier for your loved ones
To make sure that your loved ones aren’t exposed to unnecessary delay or confusion during probate, you should follow these basic guidelines to bulletproof your will:

• Draft your will when there is no doubt that you are sound of mind;
• Videotape the signing of your will. This way there will be proof of your intent, sanity and the lack of coercion;
• Make sure your spouse is not in the room while the will is being prepared and signed, and make sure the witnesses note it. This may seem extreme, but in cases where a family member charges coercion to get the will overturned, it will be very hard to prove coercion when there’s physical evidence that your wife was not present during the will’s creation or signing;
• Mention every member or your family in your will — even if it’s just to politely disinherit them;
• Record your wishes in a number of documents. The more backup you have, the less likely for your will to be overturned.
• Finally a properly drafted will can provide you and your family relief in a time of uncertainty and upheaval. Not only does it provide direction, but it will help avoid unnecessary and substantial estate taxes, if composed appropriately.

For more information on wills please contact Connie Bruwer or Ansja Ferreira, experts in the field of wills and estate planning.

The post Important advice about Wills first appeared on PC Bruwer & Partners / Vennote.

Kom om ons wees maar eerlik…nie een van ons hou daarvan om aan die dood te dink nie. Soos belasting, is dit ongelukkig ‘n werklikheid.

Connie Bruwer, Besturende Direkteur van P C Bruwer en Vennote, en ook ‘n deskundige op die gebied van testamente, bied hieronder ‘n uiteensetting van die belangrikheid en die regte manier om jou testament te beplan en op te stel.

Jou testament: Die belangrikste dokument in jou boedelbeplanning

Jou testament is die belangrikste dokument in jou boedelbeplanning. Dit meld hoe en aan wie jou besittings verdeel sal word, wanneer jy tot sterwe kom. In die testament moet daar baie duidelik en ondubbelsinnig uiteengesit word aan wie jou bates bemaak gaan word. Daar moet geen ruimte vir dubbelsinnigheid of onduidelikheid wees nie, aangesien dit die dokument wat die meeste betwis word in die hof.

As gevolg hiervan, sal jou testament met baie duidelikheid uiteengesit moet word. Stel so gou as moontlik ‘n testament op as jy nog nie ‘n geldige testament het nie, ten einde jou gesin baie hartseer en ellende te bespaar.

Dit is ook baie belangrik om gereeld jou testament op te dateer en te hersien. Jy behoort jou testament gereeld te hersien wanneer jy:

• Trou of weer trou;
• ‘n Kind kry of aanneem;
• Eiendom of ‘n sakeonderneming koop of verkoop;
• Jou lewensversekering aanpas;
• Emigreer;
• ‘n Eggenoot deur die dood verloor.

Basiese riglyne

Bewoord die testament op so ‘n wyse dat dit nie met elke kind of kleinkind se geboorte of afsterwe verander moet word nie. Gebruik algemene terme van beskrywings om te verhoed dat daar met elke koop of verkoop van items aan die testament verander word.

• Mense wil dikwels weet hoe mense wat minderjarige kinders het hulle testament kan opstel ten einde hul kinders se erflating te beskerm. Die beste oplossing vir ouers met minderjarige kinders is om ‘n testamentêre trust vir sulke kinders te stig, waarvan die kinders die begunstigdes is en die trustee van die trust die belange van die kinders beskerm. Die trustee is die persoon wat in belang van jou kinders gaan optree en die geldsake van die trust hanteer. Die bates en kontant in die trust kan realiseer wanneer jou kinders die ouderdom van 21 jaar bereik of op ‘n ouderdom soos deur die testateur of testatrise verkies, wat net nie minder as 21 jaar moet wees nie.

• Waar minderjarige kinders ter sprake is, is dit ook belangrik om te bepaal wie die kinders se voog gaan wees in geval van jou en jou eggenote se gesamentlike afsterwe.

• Benoem ‘n eksekuteur in jou testament. Die eksekuteur is die persoon wat seker maak dat al die wetlike en finansiële aspekte rakende jou testament volgens jou wense uitgevoer word. Hulle werk nou saam met die Meester van die Hooggeregshof, banke, versekeringsmaatskappye, rekenmeesters, prokureurs en begunstigdes. Ons kry talle navrae oor mense wat wil weet wat ‘n persoon kan doen om te verseker dat hy nie ‘n verkeerde keuse maak by die aanstelling van ‘n eksekuteur nie. Daar is verskeie keuses wat hulle kan toepas. As hulle nie iemand kundigs het wat hulle kan vertrou met hulle bates nie, kan hulle hul meerderjarige kinders aanstel as eksekuteur en ‘n kundige aanstel as die beredderaar van die boedel, wat al die werk verbonde aan die afhandeling van die boedel sal doen. Die kinders wat eksekuteur is moet nog steeds die dokumente teken, soos die likwidasie en distribusierekening wat by die Meester van die Hooggeregshof ingedien word. Die eksekuteur kan met die beredderaar ooreenkom oor ‘n fooi wat die beredderaar sal vra om die boedel af te handel.

• Persone kan ook aanvanklik ‘n kundige aanstel as eksekuteur en beredderaar van hulle boedel, waar kinders nie in dieselfde stad woon as die ouers nie. Dit skep dit probleme wanneer die boedel afgehandel moet word, aangesien daar dokumente is wat geteken moet word en vertraag dit die afhandeling van die boedel.

• Dit is belangrik om daarop te let dat ‘n eksekuteur en beredderaar van ‘n boedel onder beheer is van die Meester van die Hooggeregshof, wat die belange van die oorledene en die erfgename beskerm. Dit kan ook beter wees om ‘n buitestaander aan te stel as eksekuteur, waar daar dispute tussen die kinders of erfgename sou ontstaan.

• Dit is belangrik om daarop te let, dat egtliede getroud binne gemeenskap van goedere ‘n gesamentlike testament opstel. As een van die egtliede te sterwe sou kom, is dit belangrik dat die langslewende ‘n testament moet opstel. As die langslewende te sterwe sou kom sonder ‘n geldige testament word dit beskou asof hy intestaat gesterf het, met ander woorde sonder ‘n testament en veroorsaak dit dat die oorledene se wense nie nagekom kan word nie. Dit beteken ook dat die eksekuteur sekuriteit moet lewer, indien hy nie ‘n familielid van die oorledene is nie.

Die volgende aspekte behoort nie in jou testament behandel te word nie:

• Instruksies vir die begrafnis of verassing van die oorledene se oorskot. Dit maak sin aangesien die testament gewoonlik nie gelees word voor na die begrafnis of verassing nie. Bogenoemde inligting behoort in ‘n brief opgeneem te word, waarin jou “laaste wense” uiteengesit word.
• Spesiale prokurasie.
• Enigiets waarin jy jouself weerspreek. Weersprekende boedelinstruksies kan in ‘n hof gebruik word om jou testament ongeldig te verklaar. 
• Indien jy sonder ‘n testament te sterwe kom, sal die landswette bepaal wat van jou besittings gaan word. Jy sal dus intestaat sterf, wat eenvoudig beteken “sonder enige wettige testament”. In hierdie geval tree die instestate erfregreëls in werking.
• Hou jou testament op ‘n veilige plek en hersien dit gereeld.
• ‘n “Lewende testament” kan jou gesin van ‘n baie moeilike keuse bespaar in die geval waar jy moontlik in ‘n ongeluk was of ‘n siekte opgedoen het en jy bewusteloos is en nie in staat is om laaste sake af te handel nie. Hierdie lewende testament sal bepaal of jy kunsmatig aan die lewe gehou moet word deur middel van masjiene soos respirators en buisvoeding of nie. Dit is egter belangrik om daarop te let dat daar slegs twee gevalle is waar ‘n dokter toestemming het om ‘n persoon kunsmatig aan die lewe te hou of dit te stop.

Vir meer inligting oor testamente en die opstel daarvan, kan u gerus vir Connie Bruwer of Ansja Ferreira, deskundiges op die gebied van testamente en boedelbeplanning, kontak by P C Bruwer en Vennote.

The post Raad rakende testamente first appeared on PC Bruwer & Partners / Vennote.

Connie Bruwer van PC Bruwer en Vennote gee raad oor hierdie belangrike onderwerp.

‘n Leser wil weet hoe hy koste kan bespaar op die bereddering van sy boedel.  Hy en sy vrou is ingevolge ‘n huweliksvoorwaardekontrak getroud.  Albei se testamente lui dat alle besittings van die oorledene aan die langslewende bemaak word.  Kan daar nie in so ‘n geval voorsiening gemaak word dat die koste van die bereddering van die boedel verminder of uitgeskakel kan word nie?  Veral aangesien ons besittings nie ‘n baie hoë waarde het nie.  Dit lyk onredelik dat die langslewende soveel koste moet aangaan om sy of haar eiendom te behou.  Jou vraag sny ‘n hele paar kwessies aan en ek gee kortliks aandag aan die belangrikste hiervan.

•  Testament

Die feit dat julle ingevolge ‘n huweliksvoorwaardekontrak getroud is, verplig julle nie om afsonderlike testamente te hê nie.  Julle kan ‘n gesamentlike testament ook opstel waarin julle oor jul goed beskik.  Net so kan mense wat binne gemeenskap van goedere getroud is weer elk ‘n eie testament opstel waarin elkeen na eie wil met sy of haar helfte van die gemeenskaplike boedel handel.  Dit is jul keuse.

• Boedelbelasting

Boedelbelasting is ‘n groot koste en dit het sin om daarvoor te beplan.  Moenie beplan hoe om geld beskikbaar te stel by wyse van ‘n bykomende lewenspolis voordat jy eers gekyk het na maniere om die belasting in die eerste plek te vermy of te verminder sodat jy juis nie ‘n bykomende lewenspolis hoef uit te neem nie.

Op die oordrag van bates tussen gades—en dit sluit deesdae lewensmaats in enige vorm in—is boedelbelasting nie betaalbaar nie.  Waarop julle wel sal moet let, is dat die langslewende, nadat hy of sy geërf het, met ’n vergrote boedel gaan sit wat dalk wel kwalifiseer vir boedelbelasting.  Boedelbelasting is betaalbaar op ‘n boedel met ’n bruto batewaarde van meer as R3,5 miljoen en word gehef teen 20%.  Alles wat jy besit, word in berekening gebring hiervoor, ook jou polisse.

• Kapitaalwinsbelasting:

Jou sterfte word beskou as ’n gebeurtenis wat tot kapitaalwinsbelasting (KWB) kan lei.  Daar vind mos ’n oordrag van bates plaas, waarvan die kapitaalwaarde toegeneem het.  Die effektiewe kapitaalwins-koers vir individue is 40%.  Daar is ’n jaarlikse vrystelling van R40 000 wat in die jaar van ’n persoon se dood R300 000 word.  ’n Primêre woning van onder R2 miljoen is ook van KWB vrygestel.  Boedelbelasting word eers gehef nadat KWB in berekening gebring is, maar hoewel boedelbelasting net bo die perk van R3,5 miljoen betaalbaar is, is KWB in alle gevalle betaalbaar.

• Oordragkoste en hereregte

Die woonstel wat een van julle besit, sal in die naam van die oorlewende—as dit aan die oorledene behoort het—oorgedra moet word.  Hierop sal julle die prokureur se oordragkoste moet betaal.  Hereregte is gewoonlik nie ter sprake nie.

• Beredderingskoste

Die oorledene se boedel moet beredder word.  Die wet laat toe dat die beredderaar ‘n tarief van 3,5% op die bruto batewaarde van die boedel mag hef.  Let wel, mag hef, nie moet hef nie.  Afhangend van die moeilikheidsgraad van die boedel en die gewilligheid van die beredderaar kan ‘n mens oor dié koste onderhandel.  My voorstel sal wees dat jy ‘n onderneming met jou ouditeur aangaan om jul boedels teen ‘n verlaagde tarief te beredder.  Gewoonlik kan jy dit doen as ons instelling ook jou testament opstel en die boedelbeplanning vir jou doen.

• Huweliksvoorwaardekontrak:

Jy noem nie of julle ingevolge of sonder die aanwasbedeling getroud is nie.  Sou julle ingevolge die aanwasbedeling getroud wees, sal die een met die kleinste groei in sy boedel ‘n eis hê teen die een met die grootste boedel.

The post Bespaar koste by die bereddering van jou boedel first appeared on PC Bruwer & Partners / Vennote.

Connie Bruwer from PC Bruwer and partners gives advice about this important topic.

Question:  I recently heard from someone at a major trust company, who did a quick poll, that nearly 30% of substantial estates and wills will have a cash shortage.

Connie:  Many people buy a life policy to address this cash shortfall as identified by a counselor. This is the correct route, because life insurance is and remains the cheapest way of making money available. But then a lot of people do something stupid.

Question:  What do they do, Connie?

Connie:  The policy is made out to a beneficiary, mostly to save on executor costs. The problem is that a policy that is directed to a beneficiary, is not taken into account in the calculation of the executor’s costs because it does not flow through your estate.

Question: How is executor costs calculated?

Connie:  Executor Costs (3.5%) is calculated on the gross value of the estate. Thus the cash deficit is not resolved by the sale of the policy.

Question:  Can you provide us with practical examples so that we can understand it better?

Connie:  I will present two examples to explain this better. A man bequeathed everything to his wife. The beneficiary life policy paid directly to the woman, and the money does not flow through the estate. The woman received the money from the policy and wisely invested that money. Meanwhile, it takes the executor a month or two or three, before he gathers all the details for the completion of the estate. This includes details of debts of the estate. But then there is no cash in the estate to pay the debt.

Question:  What choices does this woman now have?

Connie:  Now this woman has two choices: Either she gives a portion of the policy proceeds to the creditors that can be paid or she has to sell the house to get money to do it. Because the money is on a fixed deposit, the woman’s house will have to be sold.

Question:  What other example can you give us?

Connie:  A young man with a good income decides to buy himself an apartment and a rather expensive car on credit. But one way or another he incurred the debt without any security or policy. Then he died. The will says that his partner must inherit the car and the apartment. Unfortunately his partner will be on the street as the bank has repossessed the car and the apartment. There was no cash in the estate to pay off the debt and the executor has no choice but to otherwise take action.

Question:  How can one stop such a fiasco from happening?

Connie:  If you do your estate planning by an expert he or she will point out if there is any shortage of cash in the estate. Make sure you work on this deficiency, and be careful to not simply allocate the policy to a beneficiary to save on executor funds. Ensure that all debt obligations as well as the cost of your death, such as funeral costs, executor costs etc., can be covered from available cash.

Question:  The bequest of cash to minor heirs are also involved here. Explain.

Connie:  Sometimes, in broken marriages, you get the situation, that man bequeaths money for his children directly. One must realise that the money will be controlled by a guardian, or it could even end up in the master of the court’s Guardians’ Fund.

Question:  What is then the best option to provide for your children in your will?

Connie:  It is better to create a trust in your will that will observe the child’s care until he or she is of age, after which the trust can be terminated and the rest of the money paid to him or her.

Question:  To conclude, what other advice do you have for our readers with planning their estates.

Connie:  In their financial planning the reader must understand the full consequence of their death and not do emotional appointments and leave instructions that might later adversely affect their relatives. Many trust companies are now willing to negotiate administration costs whilst you live. Do this as part of your planning, because then you have control.

The post Important aspects regarding estate planning. first appeared on PC Bruwer & Partners / Vennote.

Connie Bruwer van PC Bruwer en vennote gee raad oor die belangrike aspek.

 Vraag:  Ek het onlangs by iemand by ‘n groot trustmaatskappy gehoor dat volgens ‘n kitspeiling wat hy onlangs gedoen het, byna 30% van substansiële boedels en testamente ‘n kontanttekort het.

Connie:  Baie mense koop na beplanning deur ‘n raadgewer ‘n lewenspolis juis om werk te maak van die kontanttekort wat uitgewys word.  Dit is heeltemal korrek, want lewensversekering is en bly die goedkoopste manier om geld beskikbaar te stel.  Maar dan gaan doen baie mense iets dom.

Vraag:  Wat is dit, Connie?

Connie:  Die polis word begunstig, meestal om te bespaar op eksekuteurskoste.  ‘n Polis wat regstreeks aan ‘n begunstigde uitbetaal word, word nie in berekening gebring by die berekening van die eksekuteurstarief nie omdat dit nie deur jou boedel vloei nie.

Vraag:  Hoe word eksekuteurskoste bereken?

Connie:  Eksekuteurskoste (3,5%) word bereken op die brutowaarde van die boedel.  Nou is die kontanttekort nie opgelos deur die koop van die polis nie.

Vraag:  Kan jy dalk vir ons praktiese voorbeelde gee sodat ons dit beter kan verstaan?

Connie:  Ek gaan sommer twee voorbeelde gee om dit te verduidelik.  ‘n Man het alles aan sy vrou bemaak.  Die begunstigde lewenspolis betaal regstreeks aan die vrou uit en die geld vloei nie deur die boedel nie.  Die vrou ontvang die geld uit die polis en wyslik gaan belê sy daardie geld vas.  Intussen neem dit die eksekuteur ‘n maand of twee, drie voordat hy alle besonderhede ingewin het vir die afhandeling van die boedel.  Dit sluit in besonderhede van skuld in die boedel.  Maar toe is daar niks kontant in die boedel om daardie skuld mee te vereffen nie.

Vraag:  Watter keuses het daardie vrou dan?

Connie:  Nou het daardie vrou twee keuses, of sy gee ‘n deel van daardie polisopbrengs op sodat die skuldeisers betaal kan word of sy moet die huis verkoop om geld te kry om dit te doen.  Omdat die geld intussen vas belê is, sal die vrou se huis onder haar uit verkoop word.

Vraag:  Wat is die ander voorbeeld wat jy vir ons kan gee?

Connie:  ‘n Jong man met ‘n goeie inkomste koop vir hom ‘n woonstel en ‘n taamlik duur motor op skuld.  Maar op die een of ander wyse het hy die skuld aangegaan sonder om enige sekerheid deur ‘n polis te bied.  Toe sterf hy.  Sy testament lees dat sy lewensmaat die motor en die woonstel moet erf.  Kort voor lank sit die lewensmaat op straat omdat die bank sowel die motor as die woonstel teruggeneem het.  Daar was nie kontant in die boedel om die skuld af te los nie en dit het die eksekuteur geen keuse gelaat om anders op te tree nie.

Vraag:  Hoe kan ‘n mens so ‘n fiasko voorkom?

Connie:  As jy beplanning laat doen deur ‘n kundige sal hy of sy jou daarop wys as daar enige kontanttekort in die boedel is.  Maak seker dat jy werk maak van hierdie tekort en wees dan versigtig om nie goedsmoeds die polis – in gevalle waar ‘n polis gebruik word – te begunstig net om op die eksekuteurstarief te bespaar nie.  Sorg dat alle skuldverpligtinge asook die koste van jou sterfte, soos begrafniskoste, eksekuteurstariewe en dies meer, uit die beskikbare kontant gedek kan word.

Vraag:  Hier is ook die bemaking van kontant aan minderjarige erfgename ter sprake.

Connie:  ‘n Mens kry dit soms by gebroke huwelike dat die man nie geld vir sy kinders aan sy eksvrou wil toevertrou nie en dit dan aan die kinders self bemaak.  Besef dat die geld deur ‘n voog beheer gaan word, of dit kan selfs in die meester van die hof se voogdyfonds beland.

Vraag:  Wat is die dan die beste opsie om voorsiening te maak vir jou kinders in jou testament?

Connie:  Dit is beter om deur jou testament ‘n trust te skep wat die kind se versorging sal waarneem totdat hy of sy mondig is, waarna die trust kan ontbind en die res van die geld aan hom of haar uitbetaal.

Vraag:  Om af te sluit, watter ander raad kan jy vir ons lesers gee met die beplanning van hul boedels.

Connie:  In hul finansiële beplanning moet lesers die volledige gevolge van hul dood verstaan en nie goedsmoeds aanstellings doen en instruksies gee wat hul naasbestaandes later nadelig kan raak nie.  Baie trustmaatskappye is deesdae bereid om beredderingskoste met jou te beding terwyl jy lewe.  Doen dit as deel van jou beplanning, want dan het jy nog beheer.

The post Belangrike aspekte rakende boedels first appeared on PC Bruwer & Partners / Vennote.

Connie Bruwer from PC Bruwer and Partners gives advice on this important topic.

A reader wants to know how he can save costs on the administration of his estate. He and his wife are married under a prenuptial agreement. Both their wills state that all property of the deceased are bequeathed to the surviving spouse. Is there no way that the cost of administration of the estate can be reduced or be eliminated? It seems unreasonable that the surviving party have to incur a lot of expenses to retain his or her property. Your question touches on quite a few issues and I will give brief attention to the most important.

• Will

The fact that you are married under a prenuptial agreement does not mean that you are obliged to have separate wills. You can also have a joint will. Similarly, people who are married in community of property can each have a separate will who deals with his or her half of the joint estate. It’s your choice.

• Estate Tax

Inheritance tax is a huge cost and it makes sense to plan for it. Do not plan how money will be made available by means of an additional life insurance policy before you have even looked at ways to avoid taxes in the first place or to reduce it so that you really do not need an additional life insurance policy.

On the transfer of assets between spouses – and this includes partners in any form – estate duty is payable. Something which you have to note is that the survivor, after he or she has inherited, with an enlarged estate, will probably qualify for inheritance tax. Inheritance tax is payable on an estate with a gross asset value of more than R3.5 million and is charged at 20%. Everything you own is taken into account for this, including your policies.

• Capital gains tax

Your death is considered an event that can result in capital gains tax (CGT). A transfer of assets takes place and your capital value has increased. The capital gains rate for individuals is 40%. There is an annual exemption of R30 000 that becomes R300 000 in the year of a person’s death. A primary residence with a capital gain under R2 million is also exempted from CGT. Estate tax is only levied after CGT is taken into account, but although estate tax is just above the limit of R3.5 million, CGT is payable in all cases where applicable.

• Transfer fees and duty

The property that one of you owns, will have to be transferred in the name of the surviving spouse – if the property belonged to the deceased. Then you will have to pay the lawyer’s transfer costs. Duty is usually not addressed.

• Administration costs

The deceased’s estate needs to be administered. The law allows that the administrator may charge a rate of 3.5% on the gross asset value of the estate. Please note, may charge, not to charge. Depending on the complexity of the estate and the willingness of the administrator, you can negotiate about the costs. My suggestion would be that you enter into a business agreement with your auditor to administer your estate against a reduced rate. Usually you can do this if this institution also drafts your will and do your estate planning.

• Ante nuptial contract

You do not mention whether you are married with or without accrual. If you are married with an accrual agreement, the one with the smallest growth in his estate will have a claim against the one with the largest estate.

The post Save costs with the administration of your estate first appeared on PC Bruwer & Partners / Vennote.

Connie Bruwer van PC Bruwer en Vennote gee raad oor hierdie belangrike onderwerp.

Vraag:  ’n Kliënt skryf dat haar seun oorlede is sonder om ’n testament na te laat. Sy wil weet wat die regte van die seun se kind, haar kleinseun, is.   As ek reg aflei uit die brief is die feite min of meer soos volg: Haar seun het ’n verhouding gehad met iemand by wie hy ’n seun gehad het. Hy en die kind se ma is nooit getroud nie en sy is later met iemand anders getroud. Die kind is nou volwasse.  Sy ma en haar prokureur eis nou ’n deel van die oorledene se boedel. Die kliënt  wil weet wat haar kleinseun se regte is.

Connie:  Net eers iets algemeens, dan kyk ons na die feite van die geval. As iemand intestaat, dit is sonder testament, sterf word daar met sy bates gehandel ingevolge die intestate erfreg. Hierdie wet vereis sekere stappe en skryf voor wie wat en hoeveel mag kry van die boedel nadat skuldverpligtinge en ander laste en belastings verhaal is.

As die oorledene binne gemeenskap van goed getroud was, sal die boedel in twee verdeel word aangesien hy net die helfte daarvan besit het. Die een helfte bly die eiendom van die vrou (as sy die langslewende is) en die man (as hy die oorledene is) se bates vererf dan intestaat.

Dan volg die “reël” dat die bates verdeel moet word volgens hoeveel kinders daar is plus een as hy getroud was. Die netto boedel word dus gelykop verdeel tussen die kinders en die vrou.

As die vrou se deel minder is as ’n bedrag wat deur die minister bepaal word, moet sy minstens hierdie bedrag ontvang. Tans is die bedrag R125 000.

As daar geen eggenote is nie, vererf die volle boedel na die kinders in gelyke dele. As een van die kinders reeds oorlede is, ontvang die kinders van daardie kind dié deel. As daar nie kinders is nie, vererf alles in gelyke dele na die ouers ensovoorts, altyd na die naaste familie. Waar geen naasbestaandes is nie, word dit ná 30 jaar aan die staat verbeur.

Daarom is die eerste vraag in ons geval hier: Was die man getroud?

Vraag:  Hoe word ‘n huwelik deesdae geïnterpreteer?

Connie:  Nou, ’n huwelik word deesdae wyd geïnterpreteer, maar uit die kliënt  se brief lyk dit vir my die vrou was getroud met iemand anders. Ek dink ons is dus veilig deur aan te neem dat hy nie met haar getroud was nie.

Daar blyk ook nie ander kinders te wees nie, dus is die seun na wie die kliënt  verwys die enigste wettige erfgenaam. En volgens die intestate erfreg die enigste wat ’n aanspraak op sy pa se netto bates sal hê. Anders gestel, hy moet alles kry wat sy pa besit het. Die feit dat die vrou sy biologiese ma is, is nie genoeg gronde vir haar om ’n deel van die boedel op te eis nie.

Dit is natuurlik interessant dat as sy ook sonder testament sterf die seun ’n aanspraak op haar boedel kan hê op grond van die feit dat hy haar kind is, tensy hy natuurlik deur iemand anders aangeneem is.

Hoe ook al, ek weet nie op watter gronde die vrou ’n deel van die boedel opeis nie. Uit die gegewens blyk dit nie vir onderhoud te wees nie en die feit dat ’n mens by iemand geslaap het, gee jou nie ’n reg op sy boedel nie.

Ek stel voor jou kleinseun gaan spreek die meester van die hof (’n goeie prokureur sou seker beter wees, maar duurder) en probeer die ding uitsorteer, want volgens jou gegewens is hy die enigste wettige erfgenaam en die ma se eis lyk na ’n kansvattery.

The post Die belangrikheid van testamente first appeared on PC Bruwer & Partners / Vennote.

A living will is a statement about the kind of medical treatment you would prefer in the event you are incapacitated. It only applies in circumstances where your death is inevitable. Your living will spell out whether or not you want extraordinary measures taken to sustain your life. And, perhaps most importantly, it spares them from having to make the decision as to whether you should be put on machines to prevent your death. These machines include artificial respirators (for life support) and automated feeding devices (for nourishment and hydration). Should you wish not to have these measures taken, if you become seriously ill or injured, you can issue a “Do not Resuscitate order” which will stop a hospital from resuscitating you if your breathing or heart stops. You should know that there are only two conditions under which a doctor has permission to hold back or suspend life support. And even if either of these is present, two doctors must concur on the diagnosis: You must be terminally and untreatably ill, or you must be diagnosed as being in a continual vegetative state.

P C Bruwer and partners is a small sized accounting and auditing firm situated in Bloemfontein, Free State Province.  The firm also renders its services to clients in other centres in the Republic of South Africa.  The firm has been in business since 1973 and renders a wide variety of services to a large spectrum of clients.  The business is incorporated and is known as Bruwer Theron Incorporated trading as P C Bruwer and partners.

The post A living will: sparing your family from life’s most difficult choice first appeared on PC Bruwer & Partners / Vennote.

Wills are generally the centerpiece of an estate plan, allowing people to direct how their property should be divided and who should get it after they die.

Discourage your parents from trying to save money by having a joint will, in which each one leaves all money and property to the other. Each parent should have a separate will — and consider covering the key points discussed below.

Name a personal representative or executor.

In an individual will, your parent can name a person or institution to act as personal representative, called an executor, who will be responsible for making sure that the will is carried out as

written and that the property is divided up and distributed as directed. It’s also wise to name an alternate in case the first choice is unable or unwilling to act.

Name beneficiaries to get specific property.

Your parent’s will can specify separate gifts of property — called specific bequests — including cash, personal property, or real estate. Likely beneficiaries for such bequests are children and other

relatives, but they may also include friends, business associates, charities, or other organizations.

Specify alternate beneficiaries.

In fashioning their wills, most people assume that the beneficiaries they name will survive to take the property they’ve specified for them. The most thoughtful wills provide for

what should happen if those beneficiaries don’t survive — either by naming a backup recipient or indicating that the person’s spouse or children should take the property instead.

Name someone to take all remaining property.

If your parent has opted to make specific bequests of property, a will is also the place to name people or organizations to take whatever property is left . This property is usually called a “residuary estate.”

Give directions on dividing personal assets.

If your parent wants assets divided among children, charities, or other beneficiaries, the will should note precisely what property is included In that pool. It should also specify whether assets are to go directly to beneficiaries or whether they’re to be sold and the value divided among the beneficiaries, either equally or according to stated percentages.

Give directions for allocating business assets.

Business assets are often separate from personal assets — and most business owners have very specific ideas about what should be done with them after their deaths. If your parents don’t have a written plan covering the windup of their business, encourage them to see an experienced estate planning attorney to ensure that their wishes are clearly indicated in each of their wills.

Specify how debts, expenses, and taxes should be paid.

The will should spell out your parent’s wishes regarding how to settle debts and final expenses, such as funeral and probate costs, as well as any estate and capital gains taxes. Usually

a specific source, such as a bank account, will be tagged to cover these costs.

Cancel debts others owe.

A nice added touch is that people making wills can use the documents to relieve those who owed them money from the responsibility of paying that debt — along with any interest that accumulated on it — to them or their survivors.

Indicate special instructions for maintaining real estate.

If your parents name someone to keep their house, they should list any specific instructions for its care and upkeep in each will

Provide a caretaker for pets.

Since the law considers pets to be property, the best way for your parents to assure a good home for theirs is to leave the animal to someone named in each will who has agreed to give it a good home. Many people also leave that person an amount of money to help cover the caretaking expenses.

The post 10 Things to include in your parents will first appeared on PC Bruwer & Partners / Vennote.