The importance of a will and estate planning for property owners
Category Property Tips
A recent notification from our conveyancing attorneys, STBB, again highlighted the importance of forward planning in terms of what happens to your property, assets and loved ones in the event of incapacitation or death.
This is where a professionally drawn up Will and Asset Planning is vital. A properly drawn up Will means your estate can devolve efficiently, cost-effectively and with minimal delay to your beneficiaries rather than being left up to the legal system as the case would be in the absence of a Will.
A Will enables you to set out exactly what must happen to your property and assets and, how your estate must be administered as well as the financial security provided for dependents. A spouse and minor children can be taken care of immediately while other assets including property can be dealt with quickly and efficiently.
An attorney will provide guidance on aspects such as a Trust for minor children, the structuring of assets and aspects such as Capital Gains Tax and minimising estate duty payable. Various options can be catered for including stipulation of a guardian and a Will Trust for minor children.
Your Will should be updated regularly, especially when there is change in your circumstances such as marital status, birth of a child or acquisition of property, wealth or a business.
While a Will deals with what happens in the event of death, Estate Planning aims to arrange the person's assets while still alive, but still as they may wish for it to be managed or distributed in the event of incapacitation or death.
The process includes arranging assets in a way which protects these and aims to avoid unnecessary estate duty and other taxes. It will include documents effective during your lifetime and those which only come into effect upon death.
It enables you to still enjoy your estate and have access to it for future retirement needs. It should also be flexible to allow for legal or circumstantial changes. By planning ahead, you can avoid unnecessary complications and stress for loved ones who can have access to the necessary funds including cash flow for payment of property transfer expenses, attorney and other costs involved.
The point of departure is to consult with an attorney who can provide the necessary guidance and facilitate the process.
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Author: Gina Meintjes
