Optimise your financial and legal structure by adequately planning for your estate.

Planning an estate is also a way of optimising the use of financial and other legal structures such as companies and trusts. 

Proper Estate Planning ensures that:

  • Heirs enjoy the benefit of wealth creation. 
  • The cost of an estate, such as taxes and other expenses are kept to the minimum. 
  • The transfer of assets to heirs is simplified. 
  • Complications and uncertainties which may trouble family members are limited. 

Here's what to consider when planning for your estate:

1. Will and Testament

It is important to structure the Will in such a manner that it would secure a practical and equitable distribution of the estate, whilst at the same time affording beneficiaries adequate protection and minimising death duties.

2. Assurance

Identifying the need for income and capital for events such as disability, retirement, funding the acquisition of a business interest (partnership assurance) and for the maintenance of your dependants in the event of your death.

3. Buy and Sell Agreement

Protecting partners in the event of death or disability of one partner.

Succession: Who takes over your sole proprietary, and on what terms?^

Taxation: What are the donations tax, income tax (including Capital Gains Tax) and Estate Duty implications?

Property should it be bought in the name of an individual, a trust or a company.

4. Deceased Estates

The administration of deceased estates, in accordance with the last Will and Testament of the deceased, or in terms of the laws of intestacy, where the deceased had no Will.

What is a will and why do I need one?

  • A Will is a written document in which a person can determine how his/her assets are to be distributed after his/her death and to communicate last instructions to various people and institutions.
  • There cannot be effective succession or estate planning if a valid Will is not in place.
  • A Will should ideally be comprehensive, yet simple. References in a Will to assets and other matters should be clear and unambiguous.
  • Every person of the age of 16 years or more, may make a Will, provided they are capable of understanding the nature and effect of their act.
  • A Will should be regularly reviewed to ensure that it always reflects one’s current circumstances.

Advantage of having a will & testament

  • To avoid the application of the laws pertaining intestate succession.
  • To allow the testator/testatrix to choose his/her heirs.
  • To prescribe the conditions upon which an asset is to be inherited.
  • To appoint Executors and Trustees who are responsible for the smooth and sufficient transfer and administration of assets on the death of the testator/testatrix.
  • To apply safeguards to protect an heir’s inheritance.
  • To avoid lengthy delays in the administration of an estate and the transfer of assets.

Disadvantages of dying without a Will & Testament

  • No appointment of an Executor of choice
  • No choice of heirs
  • Law on Intestate Succession prescribes who will inherit
  • No creation of a testamentary trust to safe-keep the inheritance of minor heirs
  • Inheritance of minor heirs paid to the Guardian’s Fund

5. Estate Administration 

Mchumana Investments has a section that administers all of our deceased estates.  The administration of an estate can be a highly technical process which may appear cumbersome and difficult to the uninformed. As executor we strives to administer clients’ estates as quickly as possible to the full satisfaction of all parties concerned without giving up on our personal service.