SERVICES

Estate Planning

What is estate planning?
You spend most of your life building up your estate but did you know that you could spend a quarter of it on unnecessary expenses or taxes if you don’t have a proper estate plan in place?

Estate planning involves calculating the value of a person’s assets and liabilities at any given time. Using a realistic growth rate for your estate, this will give you a clear picture of what would happen on your death or retirement.

An estate plan will ensure that your wishes and intentions are effected through tools such as a properly structured will or trust, for example. An estate plan will also help you to make proper arrangements to dispose of your assets and liabilities in the case of your death, ensuring that estate duties are handled and the results you want for your beneficences are achieved.

A typical estate plan will include:

tri Will tri Capital Gains Tax considerations and strategies
tri Trust (where applicable) tri Liquidity requirements
tri Existing financial structures tri Executor’s remuneration
tri Policy beneficiary nominations tri Specific issues or concerns
tri Estate duties and strategies

 

What is estate planning?

We know that life is for living at its fullest! However, it is also fragile and any number of accidents could lead to your or your family’s life changing forever in the most dramatic ways. So, in order to get on with the business of living, you need to make sure you are covered for risk and that you have planned for the future, whatever happens.

With an individualised estate plan, you can simply add or remove your selected benefits as your life changes. A personalised estate plan will meet your needs and wishes in such a way that it protects your assets and reduces the exposure of your estate to taxes and estate expenses. This will ensure the smooth transition of your estate on your death, giving you peace of mind for the future of your beneficiaries.

Planning with MVest

Estate planning has become an increasingly important part of financial planning and MVest aims to provide our clients with a Comprehensive Estate Planning service. An initial consultation and assessment with an MVest team member will establish the importance and requirements of your estate plan, and will allow us to create a personalised plan just for you, focused on your specific needs and requirements. Choosing the correct benefits for your lifestyle can be tricky which is why we are here to help you, every step of the way!

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and start planning for the future today!

 

Will

Is your will up-to-date and reflective of your current wishes? A will plays a vital role in the estate planning process. Without a will, the process of winding up and closing an estate becomes an onerous task for surviving family members.  Without a will, you will die intestate.
Did you know:  An estate planning process will be severely distorted without knowledge of your wishes in your last will.

Living Will

Did you know that if a person does not want to be kept alive by artificial means, he/she must specify this wish in a separate document called a living will? Since the person is still alive, his/her last Will and Testament is not yet a document that has come into effect, which means that a second document is needed to instruct medical practitioners not to keep the person alive artificially.
Our client wills are drawn up by Barkers Attorneys (www.barkers.co.za).

Funeral Cover / Immediate Expense Cover

If you or someone you love dies, can you count on providing a dignified burial? With a proper coffin? The truth is that funerals are expensive and, while a death in the family is always hard for those still living, it can be made harder by the added financial burden of an unexpected funeral expense. Proper funeral cover will ensure that financial aid is available during this stressful time. Immediate Expense benefit is available as an add-on to your existing life cover, and pays out within 24 hours after death.

Did you know:  An insurance company will NOT pay out cover to the beneficiary if there is investigation or an enquiry into the cause of death.  This could leave your spouse or heirs in an unfavourable position.  The immediate expense benefit would alleviate this unforeseen event, and provide some cash to fill the gap.

Trusts

The formation of a trust assists in pegging the value of an estate for estate duty purposes and related administrative tasks. There are also Capital Gains Tax implications for trusts.
A trust is a legal arrangement that has been created by a founder to place assets under the control of a trustee for the benefit of the beneficiaries. The trustees are responsible for the administration of the trust. A trust can operate during the founder’s lifetime, in which case it is an inter vivos trust, or at the death of the founder, in which case it is a testamentary trust.
Advantages of using a Trust

1.    Protection of a client’s estate against insolvency
2.    Protection of a client’s estate against divorce
3.    Pegging growth in the client’s estate
4.    Bequeathing assets to a trust
5.    Saving executor’s fees

Contact us for more information on setting up an investment trust, and creating a sinking fund. A method to reduce Estate Duty Tax

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Keyman Insurance

Definition

Keyperson assurance refers to policies effected by the employer on the life of an employee with the purpose of compensating the business for the loss it will sustain should the employee die or become permanently disabled. The plan guarantees that cash will be available to absorb any disruptions to the business, protect existing credit facilities and provide the necessary funds for the recruitment and training of a replacement.

There are the following tax implications:

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Income tax implications

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Estate duty implications

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Capital gains tax implications

Buy & Sell Insurance

Definition

A buy and sell arrangement, supported by a buy and sell agreement and life insurance, will ensure that on the death of a business owner, the business can continue to operate with as little disruption as possible for the surviving business owner/s, as well as ensuring that the estate of the deceased business owner receives fair value for his/her business interest, as well as settlement of his credit loan account.

Interestingly, there seems to be a trend for business owners to transfer their business interest into a trust. Note that where a business interest is held in a trust (or a corporate entity, such as a company) the reality is that even though the trust or corporate entity can continue to hold the business interest in perpetuity, there is often only one of the trustees/shareholders who is directly involved in the business, who influences the success of the business and upon whose death, and therefore, in all likelihood, the trust or entity would no longer wish to continue to hold its interest in the business, as it would not make commercial sense to do so.

There are the following tax implications:

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Income tax implications

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Estate duty implications

03

Capital gains tax implications

Contingent Liability Insurance

This plan deals with the case where a business insures the life of a member/shareholder who has signed surety or provided personal security for the loan effected by the business. The plan’s policy should preferably include disability cover and the amount of life and disability cover should be equal to the loan amount.

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Income tax implications

02

Estate duty implications

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Capital gains tax implications

Preferred Compensation

Preferred compensation is an arrangement whereby the employer pays an amount on a monthly basis to establish a fund that is awarded to the employee after he or she has been in the service of the employer for a specified period, such as 5 or 10 years.

The Plan
The employer increases the employee’s salary to place him/her in a position to take out a policy on his/her own life.

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Income tax implications

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Estate duty implications

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SARS Legal Requirements

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Our company provides Specialist Corporate Benefit Services in the following areas:

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Pension Funds Provident Fund Group Retirement Annuity Group Healthcare

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We provide corporate and individual healthcare solutions and we can provide you with the following services:

  1. Corporate and Individual Health – SA: Would you like a wellness program for your company? Call us to arrange for a discussion on this exciting program.
  2. Corporate and Individual Health – International (DRC/ANGOLA/MOZAMBIQUE)
  3. Evacuation and Repatriation Programme
  4. Need affordable Workers Healthcare – look no further than Ocsacare. Call us!
  5. Need to cover the gap between what your doctor charges and what medical aid pay?  Call us to quote on Gap Cover for all ages.
  6. Please contact us for a comparison of all Medical Aid options on the market.
Health-Logos_0004_Momentu,-health   

contactand start planning for the future today!

Please contact us for a comparison of all Gap Covers on the market.
   

contactand start planning for the future today!

Investment Planning

‘An Investment in Knowledge pays the best interest.’
Benjamin Franklin

‘Our approach to saving is all wrong – we need to think about monthly income, not net worth!’
Harvard Business Review 2014

We provide investment planning for short term, medium term and long term investing. We will develop a personalised investment plan for your needs and assist you in achieving your goal(s).

Our investment platforms are:

Investments-Logos_0007_Stanlib Risk-Logos_0016_Liberty Investments-Logos_0009_Momentum-investments  Investments-Logos_0011_Oldmutual-Wealth Investments-Logos_0012_Marriott  Investments-Logos_0014_Discovery-investments Investments-Logos_0015_Sanlam-investments

contactand start planning for the future today!

 

Education Planning

If you are a parent (or are planning to become one), you are probably aware of the cost of caring for and educating a child. And, these costs only increase as your child grows – think of the future costs of a university education, an overseas trip, a car, or a deposit on a flat.

You want to be able to give your child whatever he or she needs and, if you start planning ahead now, you will be able to do so. Talk to us about the possibilities for monthly/lump sum investments and boost your investment in your child’s future today.

Minimum Unit Trust – R50 per month – minimum term – 5 years.

Retirement Planning

You need to adjust your lifestyle now and save while you are earning an income, not adjusting it when you are in Retirement.

Retirement should be a time to enjoy your life, safe in the knowledge that you will have enough money to see you through the golden years and make sure you enjoy them to the fullest. However, many people are in for a rude awaking when they realise how much money they actually need to live the life they imagined they would in retiring from daily work. Even if you have been contributing to a pension or provident fund for many years, you might not have enough to live on as you have been while working due to inflation and the increased costs of living.

Many people in South Africa rely on the state, welfare organisations, and their families to provide them with funding when they retire. Some even have to re-think their retirement plans and continue working in order to survive. This is often the result of poor planning in terms of ensuring sufficient provision for retirement. It is important to invest your savings in such a way that their growth beats inflation – contact us and we can show you how!