Estate Planning: The Ambush Tax Lurking in the Wings
We all know that a comprehensive estate plan, with a carefully crafted will at its heart, is essential to ensure that we’re on track to leave our loved ones financially secure. And that of course requires us to quantify not only our assets, but also the costs that our estate will have to pay out of those assets before any distribution can find its way to our heirs.
In assessing those costs, don’t forget the tax angle – the taxman gets his cut in death as in life! In this article, we’ll focus on a cost that can be substantial but is easily overlooked: Capital Gains Tax (CGT). We’ll even show you how to calculate the estate’s likely CGT.
Why Every South African Also Needs a “Digital Will”
Estate planning in South Africa has followed a well-trodden path: we draft a will, appoint an executor, and ensure our physical assets – the house, the car, the Krugerrands – are accounted for.
However, in an era where our lives are increasingly hosted in the cloud, a significant portion of our estates is becoming invisible. Without a “digital will” or a comprehensive folder, your heirs may find themselves locked out of your financial, sentimental, and professional life.