As the year winds down, many of us are counting the weeks to that well-deserved year-end break – whether it’s an exciting trip with loved ones or a peaceful retreat at home. But before you shift into holiday mode, now is the perfect time to pause and take stock of something extremely important: your Estate Plan. Now is the time to ensure everything is in order, giving you peace of mind for the year ahead.

A common response to most Estate Planning questions, is “I have a will, I’m sorted, thanks!”. But as a Chartered Accountant CA(SA) and Certified Financial Planner CFP®, with a passion for comprehensive Estate Planning, I have seen the true value of having a well-considered Estate Plan that’s ready to plug in and play out to your loved one’s needs.

What many people overlook, is the fact that Estate Planning extends far beyond having a signed will in place. There are some vital aspects that need to be considered while reviewing your Estate Plan. Below is a list of some important points – to mention a few – but there are more to consider:

• Is there sufficient liquidity in your estate?
• Have you considered the level of Estate Duty and Capital Gains Tax applicable to your estate, and what can be done now to minimise these wealth taxes?
• Should the unexpected happen, how long will it take for your family to wind up a deceased estate, and will your heirs need financial support in the interim?
• Have you been made aware that there are some assets that your will does not have any say over? These are Assets such as Retirement Funds, Living Annuities, Life Policies and Offshore Endowments, which we term non-will assets. Thorough Estate Planning includes considering the nominated beneficiaries of these non-will assets, and whether they are aligned with your wishes.
• Who has the necessary skills and contacts to wind up your estate, and should you burden a family member with a sole Executor appointment?
• What can an Executor charge a fee on?
• Have you thought of other miscellaneous costs that are incurred in the winding up of an estate? Such as conveyancing fees, tax consultant fees, the Master’s fee etc.
• Are you associated with a Private Company and Family Trust and how are shareholdings in and loans to and from these legal entities impacting your Estate Plan?
• Succession Planning for Family Businesses
  • If you own and manage a successful family business, have you considered proper succession planning for children involved in the business? Having this in place is crucial and ensures that family wealth carries on in the most tax-efficient way for future generations to come. Passing on intergenerational wealth via a local or offshore trust and investment holding company structure is one potential solution.
• Offshore Assets and Jurisdictional Considerations
  • If you are a high-net-worth individual in possession of offshore immovable property, have you considered where your offshore immovable property is domiciled? This will have a direct impact on the succession of this property. For example, immovable property in France is subject to French Succession Law. Forced heirship rules protect direct descendants and surviving spouses, and have to be adhered to not matter what your will includes. For example, if you only have one biological child, he/she automatically takes ownership of 75% of this immovable property and your surviving spouse, only 25%. Your heirs will also be personally liable for any liabilities relating to this immovable property, according to Succession Laws in France.
  • In terms of bank accounts domiciled in the UK, probate in the UK is required. Probate is the official proving of a will. Planning ahead with a financial planner who is well-versed in cross-border estate planning, can avoid potential delays in winding up your worldwide deceased estate and avoid high costs relating to UK solicitors.
  • Ownership of UK immovable property, we look to the Succession Laws in the UK. Luckily, like South Africa, the UK adopts freedom of testation. However, it is recommended that a UK will be drawn up to deal with this immovable property.
• Foreign Inheritance Taxes
  • Estate Planning is invaluable for the global investor and is a discipline in itself.

If you are a South African owning direct offshore shares, this is very attractive from a Rand hedge and South African political and economic hedge point of view. However, this is not the case from an Estate Planning point of view. It is important to note that there is a risk of Foreign Inheritance Tax that could apply to these direct shareholdings on your death, as once again the situs (location) of the shares will determine additional tax consequences. Only a few countries have double inheritance tax treaties with South Africa. Structuring these offshore shareholdings correctly can make all the difference and can avoid the risk of paying hefty Foreign Inheritance Tax.

All of the above may seem like a great deal to consider, which is why I advise my clients to dedicate time to their Estate Planning and perhaps to start off with the smaller, more manageable tasks and work their way up to the bigger issues.

Practical tips

Granting a General Power of Attorney to your spouse and adult children has proven to be incredibly useful should you ever fall physically ill, but still have your mental capacity in tact. South African banks, however will only accept their own Special Power of Attorney when it comes to your bank accounts. So it is important to have this in place.

I also encourage my clients to update their digital estates template once a year so that their various online usernames, PINS and passwords are valid and kept with recent copies of their will and General Power of Attorney.

Drawing up a monthly spending plan that details how monthly bills are settled (debit orders vs EFTs) and keeping it up to date is also a simple task that I recommend my clients manage consistently. Should the unexpected ever happen, your surviving spouse and adult children will be able to better navigate their new normal with the financial guidelines to help them along the way.

A Letter of Wishes can be a thoughtful and meaningful way to communicate your desires for the distribution of sentimental items. It allows you to provide clear guidance to your family members and avoid misunderstandings or conflicts after you’re gone.

Yes it’s about the big things, but also the little things that prove to be so powerful when a loved one passes away. The overall aim is to have an airtight Estate Plan that will make things as stress free as possible for those you leave behind.