Page 12 - Nexia SAB&T Estate Planning Guide 2024

TOOLS FOR ESTATE PLANNING

Introduction
Once planning objectives have been set, the next step is for the team is to decide
on, is which tools are most appropriate to execute the plan.
n In estate planning, there are plenty of tools available, such as:
u The Last Will and Testament
u Bequests
u Trusts
u Donations
u Choosing an appropriate matrimonial property regime
u Using life insurance to assist with liquidity
u Living annuities
u Tax structuring

Whichever technique(s) or tool(s) the estate planner decides to use, he should
ensure that each mechanism operates in co-ordination with his ultimate wishes.
The estate planner’s Last Will and Testament, inter vivos trust structure, and
beneficiary arrangements stipulated in life insurance policies, all operate
independently of each other, yet should be co-ordinated to reflect the estate
planner’s ultimate wishes and estate planning goals. The estate planning team
needs to work together to achieve a coordinated plan.

The Last Will and Testament
n This is one of the most important tools in an estate plan.
n Every estate planner should have a Last Will and Testament, which is
reviewed and updated on a regular basis.
n A carefully structured and written Last Will and Testament can meet many of
the estate planner’s goals – including reducing estate duty liability, providing
for dependants, and achieving the efficient administration of his deceased
estate.
n The estate planner who makes a Will is referred to as a ‘testator’. In South
Africa, there are very few limitations to the freedom of the testator to dispose
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