The importance and necessity of having a will is imperative for all people.

We believe in drawing an exact picture of what happens when you die.

• Will your children be able to attend the same school?
• Will your family be able to live the same lifestyle they are accustomed to and not have to move neighbourhoods?
• Will your debts and taxes be taken care of?

The financial consequences of a death of a breadwinner are:

• Bank Accounts in the name of the breadwinner are all frozen until the estate has been wound up. This can take between 2 to 4 years.
• Policy payouts are sometimes paid into frozen bank accounts. i.e. This applies where a husband and wife share the same account. Policy payouts should be paid into a beneficiary's account.
• ONly once executors have been appointed, can the surviving spouse make arrangements to get limited access to money in the estate for school fees, groceries and funeral expenses.
• Bequests to the surviving spouse are free of estate duty, but the portion that goes to the trust for the children will be subjected to estate duty.
• Executor's fees are levied on the full value of the estate and are payable.
• Upon death, all debts must be settled, and if there is not enough money in the estate, properties with bonds are sold, which in turn attracts capital gains tax.

Ideally a person should establish a trust while they are still alive and place their assets in this trust. The cost associated with this will be much lower than what it would cost when you are dead. In this case, your outcome will be as follows:

• The trust's bank accounts are not frozen upon death of the breadwinner, because the trust has not died and is not part of an estate.
• The trust is the beneficiary on your policy and the payout lands in the trust's bank account.
• Your spouse is one of the trustees of the trust, and your death does not place any restriction on them to accessing funds to the trust.
• There is no estate duty, as the trust is not part of your estate
• The trust has no executors becuase if has not died
• There is no debts to be settled, as the trust has not died. In case there are debts to be settled, there should be enough in the trust from the life insurance policy.

To ensure that your family is secured in the event of your death, contact our offices today and find out how easy it is to set up a trust and ensure your family's living lifestyle continues when you are gone.