Alexander Forbes Financial Planning Consultants

One of the ways to minimise estate duty, protect underage inheritors and defer capital gains tax is via a trust. A trust allows a donor to transfer certain assets to appointed trustees who control, manage and dispose of those assets in favour of the trust’s beneficiaries and according to the trust deed. The document is set up according to the donor’s wishes and in terms of the law.

There are a variety of trusts that can be used depending on your circumstances. These options are worth exploring and examining while you are still alive. Generally there are two kinds of trusts: Testamentary trust: specified in your Will and only comes into effect on your death. It is used to look after minor children if one or both parents die while the children are still minors Inter-vivos trust: set up while you are alive.

On donating or transferring your assets into the trust, you no longer own or control the assets.

Does your Will adequately provide for your family?

To ensure your final wishes are carried out correctly, your last Will and Testament must be up to date and unambiguous. Without a Will, efforts will be made by the State to divide your estate fairly, but this will be a time-consuming and expensive task.

You never know what tomorrow will bring, but you can make sure you are prepared for the worst. And in doing so, you safeguard yourself and your family from unwanted financial pressures in difficult times.

Disability and dread disease insurance cover replaces your income and covers expected medical costs as a result of you being disabled or contracting a dread disease. Unlike death cover, disability and dread disease cover is based on the life assured and not the dependants.

What will happen to your children if you die? Do you have life insurance to replace your income so your dependants can continue with their schooling? 

Our qualified financial planners will assist you to determine the amount of death cover you need. You will need to consider how much money you currently have, the amount of income your dependants will need if you can’t provide for them anymore and if you are married, how much your spouse will need.