Eric Jordaan of Crue Invest shares practical strategies to avoid liquidity shortfalls and mitigate financial risks for your heirs.
You can also listen to this podcast on iono.fm here. ADVERTISEMENT CONTINUE READING BELOW BOITUMELO NTSOKO: Many people underestimate the cost involved in managing their estates after their passing, which can lead to liquidity shortfalls and financial strain for their families.
ERIC JORDAAN: I think the place to start is really to have a good understanding of what the actual assets and liabilities in the estate are. So sit down and make a list of exactly what those assets are on the one hand, where they’re situated, how they are invested, and where they are registered; and then secondly look at the types of liabilities in these estates – whether a bond or outstanding accounts and so forth.
The next step would then be to deduct from those assets any liabilities that the estate has and any costs that the estate itself needs to pay. Those costs will take into account things like executor fees, taxes and so forth.Calculating the dutiable value of your estate So there we would then apply the rates of estate duty to that balance. Up to the first R30 million will be taxed at 20%, and anything above that mark of R30 million will then be taxed at a rate of 25%.
BOITUMELO NTSOKO: Now that we’ve discussed calculating estate duty, let’s focus on ensuring estate liquidity. How can individuals address liquidity shortfalls and provide financial security for their loved ones? BOITUMELO NTSOKO: Are there any other considerations individuals should keep in mind when structuring life insurance policies for estate-planning purposes?
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
What is a special trust, and how can you use it effectively?Eric Jordaan of Crue Invest discusses the qualifying criteria, tax implications, and benefits of these essential estate planning tools.
Read more »
Ledwaba: Jordaan showed me a scan of his brainLedwaba: Jordaan showed me a scan of his brain
Read more »
Safa’s CEO is turning out to be another Danny Jordaan abettorTim Spirit | Safa’s CEO is turning out to be another Danny Jordaan abettor
Read more »
Kaizer Chiefs legend confirms desire to replace Jordaan?A Kaizer Chiefs legend has opened up on his ambitions to help clean up shop at the South African Football Association (Safa).
Read more »
Safa rescinds ban, but Ria Ledwaba vows to continue challenging Danny Jordaan’s leadershipSafa rescinds ban, but Ria Ledwaba vows to continue challenging Danny Jordaan’s leadership
Read more »
Jordaan’s Reign In Trouble?Jordaan’s Reign In Trouble?
Read more »