Estate Planning South Africa

6 Estate Planning Tips

Planning for one day, when you are not longer around, is something that must start today.  Estate planning, wealth transfer, legacy transfer is so vital and essential.  Why let government decide who inherits from your estate?

1. Update your will and review beneficiaries

Whether you have children or not, one of the most important parts of estate planning is to make sure you have a will, which can outline who is nominated as beneficiaries, trust provisions for minors and guardians to look after our little ones. Once you have written a will with the guidance of a professional, it is important to update it when the need arises. As the years go on and your situation changes, you may wish to change the names of beneficiaries in your will, life insurance policies, trust deeds and group life funds.

It’s also important to make sure that your loved ones know exactly where to locate all necessary documents in the event of your death.

2. Make a living will

It’s a good idea to draw up a living will, which is written evidence of your wishes with regards to the type of medical care that you would (or would not) want in the event that you don’t have the physical capacity to communicate your needs. This is especially important in cases where there is no hope of any sort of significant recovery.

3. Appoint guardians and trustees for minors

Deciding who would raise your children if you and your partner both die is a difficult task that many parents avoid doing. However, it is essential to nominate a legal guardian for any minors in your will in case there is ever a tragedy that would leave them orphaned. The legal guardian/s that you choose for your kids will be responsible for looking after them until they are 18 years old, maybe even longer, so it is not a decision to be taken lightly, and there are several factors you should consider, such as the guardian’s age, location, financial situation, and existing responsibilities.

You can also set up a trust in your will so as to provide an income and capital for your children as well as to protect their inheritance, and you can make additional provisions for their guardians. Furthermore, you should appoint an independent trustee in your will — their role is to administer your children’s inheritance to them, while a guardian’s role is to care for them. It is crucial that you appoint a trustee for inheritances by minors, as in the absence of such provisions in a will, your child’s inheritance will be kept until they reach adulthood in the Guardian’s Fund, which falls under the administration of the Master of the High Court.

4. Make donations

You can donate up to R100,000 each tax year to children or a trust, without needing to pay any donations tax; and there is no limit on the amount that you can donate to your spouse tax-free.

You can reduce your estate and avoid significant estate taxes by making donations. There are various other ways to limit certain taxes, such as estate duty and capital gains tax, depending on your family situation and the size of your estate, so don’t hesitate to arrange a meeting to discuss the options.

5. Secure your offshore assets

If you intend to keep any offshore assets, it means you have a foreign estate that needs to be administered too. Each country has its own legislation when it comes to dealing with inheritance, and a South African will won’t necessarily meet another country’s legal requirements, so you’ll need to execute a separate will in the jurisdiction that deals with the assets.  Consider a world wide will to deal with assets in different countries.

6. Get life insurance

When it comes to winding up an estate, many people are faced with liquidity issues, which is when there is not enough money to settle the estate’s liabilities — be that a bond, vehicle finance, taxes, executor’s fees or conveyancing costs.

If this is the case, your loved ones could be forced to sell assets, such as the family home, to cover the expenses. For this reason, it is important to get comprehensive life insurance, which will provide estate liquidity in the event of your passing.


As you can see estate planning is multi-faceted and you should not go the DIY approach.  Contact me for a complimentary discussion and to start your planning.

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