Page 5 - Nexia SAB&T Estate Planning Guide 2024

WHAT IS ESTATE PLANNING?

n An ‘estate’ comprises the assets and liabilities that an estate planner
accumulates during his lifetime, and which he leaves behind at his death.
n ‘Estate planning’ has been defined as the process of creating and managing a
programme that is designed to:
u Preserve, increase and protect an estate planner’s assets during his
lifetime;
u Ensure the most effective and beneficial distribution thereof to succeeding
generations on his death, and in accordance with his wishes.
n A common misconception about estate planning is that it revolves solely
around the making of a Last Will and Testament, or the structuring of an estate
planner’s affairs so as to reduce estate duty.
n Estate planning is multidisciplinary in nature, and should take into account
an individual estate planner’s financial, economical, social, and psychological
needs in relation to his estate, himself, his family and his beneficiaries.
n It is not a once-and-for-all activity. The estate planner should regard it as an
on-going process, with built in flexibility.
n It involves the estate planner entering into a strategic exercise, comprising the
following steps:

Determining a snapshot of net worth – including assets, liabilities and income

Setting goals and planning objectives – deciding in advance what to do with
assets and liabilities

Deciding on appropriate estate planning tools – once the objectives have
been set, deciding on ‘how’ to do it

Setting timeframes – deciding ‘when’ to do it

Execution – deciding ‘who’ should do it, deciding on the team of professionals
to assist with executing the plan

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