Page 8 - Nexia SAB&T Estate Planning Guide 2024

AIMS OF ESTATE PLANNING

n The main aim for the estate planner, working together with his estate
planning team, is to ensure that as much of his accumulated wealth is
utilised for his own benefit and for the maximum utilisation of his dependants
on his death.
n Some of the goals of estate planning can be summarised as follows:
n To achieve efficient deceased estate administration
u To ensure that the winding up of an estate takes place as efficiently and
effectively as possible.
n To appoint heirs or legatees of choice and distribute assets as the estate
planner wishes
u Where there is no Last Will and Testament, the estate will be dealt with in
accordance with the law of intestate succession, and thus his assets may
be dealt with in a manner that was not in accordance with his intentions.
A Last Will and Testament will indicate the estate planner’s wishes, and
ensure that his assets are transferred to heirs and legatees of his choice.
n To provide liquidity
u Ongoing planning for the liquidity needs of an estate is an essential
element of estate planning. Should an estate not be liquid at death, the
deceased’s family members and dependants may suffer hardship, as
they may have to provide the cash themselves or agree to the sale of an
asset to generate the cash needed.
u Planning for liquidity means ensuring, inter alia, that there are sufficient
cash funds available in an estate to:
» Pay estate duty
» Settle liabilities and administration costs
» Provide for other taxation liabilities that may arise at death, such as
capital gains tax.
» It is important for the estate planner to bear in mind that when it comes
to estate administration, the South African Revenue Service (SARS),
and his creditors, will be paid first, following which the remaining
balance in his estate, if any, will be distributed amongst his heirs.

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