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Your wealth structures:
time to declutter?
It’s hard to believe we’re already in the third month of the year. Most of us have by now long forgotten our January resolutions to clear all the clutter that tends to accumulate in our lives – in the house, the garage and the garden. However, although tackling those cupboards is likely to remain a long-term project, there’s no better time than the present to declutter your financial affairs. This means conducting a thorough review of your wealth structures – including trusts – and updating your most important documents.
In the face of so much uncertainty in the world today, affecting markets both globally and in South Africa, how can you best prepare from a wealth planning perspective? In our view, the most important thing you can do to ensure you’re not caught off-guard when the unpredictable happens – as it always does – is to take a long, hard look at all aspects of your assets and to simplify your wealth structures as far as possible. At the very least, it’s advisable to keep documents such as local and offshore wills and life policies updated.
How should one go about conducting a wealth structure review? The following questions will help you to decide what action to take:
Last will and testament
Trusts
A detailed review of your existing wealth structures will go a long way towards ensuring you have all the building blocks in place to continue your legacy. At the same time, it’s crucial that you consider both investment and trustee training for your children, especially if they will inherit an investment portfolio from your estate or will become trustees of the family discretionary trust. Equipping the next generation with the proper tools will place them in a position to further the legacy you’ve bequeathed to them.
If you need assistance in answering these questions, or in deciding on the right course of action to simplify your wealth structures and your financial affairs to ensure they’re correctly positioned for all (or at least most) eventualities, please don’t hesitate to contact us at fiduciary@privatewealth.sanlam.co.za.
The formation and registration of trusts, and the provision of independent trusteeships – both local and offshore.
The creation of BEE, charitable, special and Shariah trusts compliant with regulatory and legislative requirements.
The administration of deceased estates in South Africa and abroad.
Advice on complex structures, asset restructuring and bequests in foreign jurisdictions.
Advice on emigration and immigration, foreign earnings and the application of any double taxation agreements.
Updating trust deeds to ensure they’re in line with the latest changes in the trust environment.
Updating and/or drafting of wills dealing with South African and/or foreign assets.
Advice on the establishment and management of charitable organisations, their tax status and tax deductible donations.
Advice on the potential tax consequences and reporting obligations if you hold a US passport or green card, or if you have children living in the US.
Guidance on the financial implications of life-changing events, such as getting married, divorce or the birth of a child.
Expert advice is crucial in dealing with cross-border estate and tax planning.
Stanley Broun has spent 13 years in Fiduciary And Tax.
Have a question for Stanley?
