Category: Estate Planning

3 Hidden Medical Costs To Plan For In Estate Planning

Posted on by Angel

Everyone, absolutely everyone, needs an estate plan that is well written, thought out, and complete. Even if you don’t have a ton of money, you don’t own a home, and you don’t run your own business, you need an estate plan. Estate planning is a way to declare your wishes for what will happen if you can no longer take care of yourself and when you pass away. Estate planning eases stress on your loved ones and lets you make decisions about your legacy.

However, there is something else you need to think about in estate planning: the rest of your life. You are going to need some money for your medical care. While many people can look at the medical histories of the people around them, they may not accurately prepare for some hidden medical costs.

Hearing Aids

Most people don’t realize it, but hearing aids can actually be quite expensive – and they are going to be more common in the coming generations. So many of us spend hours every day with earbuds in at full volume that the hearing aid industry is just waiting for us.

Hearing aids that are bulky and more evident aren’t quite as expensive, but most people do not want to use those – they want sleek, hard to detect, and easy to use. Of course, you also want to get a hearing aid that actually works and allows you to do the things you enjoy, like listening to music, seeing theater, and being active.

Updating Your Home

As we get older, our homes may need to be renovated or changed to help meet our needs. Perhaps you will need to install a lift to help you get upstairs, a ramp to get into your home, or make your entire home wheelchair accessible. You want to ensure that you have some funds to make necessary updates.

Of course, you can also prepare for this by buying a home that is accessible, such as a ranch style home. Even so, you may need to make some adjustments.

Caretakers

Who will take care of you when you get older? If your children live far away or you don’t have children, you may need to plan ahead. Perhaps you will have a live-in caretaker or caretakers that help you – you will need to pay those people.

Perhaps you will go into a nursing home or a retirement community – you will need to pay for those as well. The sicker you are and the more help you need, the more expensive it can be.

Who Will Make Your Medical Decisions?

Included in your estate plan should be something called a “medical advance directive.” This gives permission for someone else to make medical decisions on your behalf. This is particularly beneficial for those who are single or those who do not have children. If you do not want an estranged relative or virtual stranger to make medical decisions for you, you need to assign someone with this task. It is best to talk to this person before you need their services.

Top Estate Planning Services in South Africa

The truth is that an accountant is the best possible person to handle estate planning for many people in South Africa. While talking about what will happen after we pass on may seem morbid, it is a necessary part of life for so many people. In particular, if you have a business, children, or loved ones that you want to provide for, this is one final way that you can take care of them. You will be able to save them a lot of stress and confusion – and potentially even money. In some ways, it is comforting for them to hear about what you wanted.

It is never too early to start estate planning, even if you don’t have a great deal of money in your bank account or you aren’t ready to give up your business just yet. Make sure you work with a professional that has your best interests in mind and can work with you to not only protect you while you are alive but to help preserve your legacy once you have passed.

To get started, schedule an appointment today.

Pretoria Business Tax Planning Tips For 2020

Posted on by Angel

As the end of the year quickly approaches, it is time to start thinking about how your business will handle taxes. Tax laws are extremely complicated and it is best to work with a professional accounting firm to have them handled appropriately. Most people work all year to ensure that their taxes are easy to file. Even so, there are still some things that you can do to make tax season easier.

 

Here are some of our best tips for tax planning for businesses as we enter 2020:

Think About Deductions

Tax deductions can help to reduce your business’ tax bill. Knowing what deductions you can take, and having an itemized list of the items that you purchased throughout the year can help your accountant get everything in order quickly. You want to get everything listed, from company trips to ordering new supplies.

Tax deductions can be any number of things that you can subtract from your taxable income, including Interest on mortgages, Medical expenses, other taxes, home usage, loans, charitable contributions, Pension and Retirement annuity contributions and more.

Through the years IC Quantum Accountant has helped scores of clients to develop a system that can work in their environment to save documentation either in hardcopy or soft. Keeping track of your expenses does not have to be a stressful exercise.

Learn What Credits and rebates You May Have

Another thing that could save you money come tax time is learning about the different credits that are offered and which ones you can get. These will help take away from your tax burden. Even better, learning about credits now can help you to meet the requirements for new or different credits for your taxes into the future.

Many tax credits give you proportional reductions on your tax bill – if you get a credit for R2500, you will see your tax bill lowered by R2500. There are many different credits that you can take advantage of – so make sure you look into your options.

There’s rebates on interest earned and others that can be taken into account for better tax planing helping you save more for retirement.

Understand Tax Brackets

There are different tax brackets that individuals and businesses fit into – so make sure you understand what tax bracket you will be in when you file. Trying to figure out how much you owe by using the wrong bracket can give you wildly wrong totals.

A tax professional should be able to help you with this.

Set Up A Place For Your Tax Records

For business owners, one of the most important things you can do is set up a place where you keep all of your relevant tax information, including payroll, receipts, and transactions. These documents are imperative to filing your taxes, so you should know where they are. Try to get digital copies that are kept in a safe place. Most businesses will keep all of their tax records, but you should aim to keep at least 7 years.

Find An Accounting Firm You Trust

Business taxes are a bit more complicated than your traditional taxes. You need to work with an accounting firm that you can trust – both with your information and in their work. It is easy to find an accounting firm that can do the work, but few are personable and help you to grow and change. Taxes are stressful, and you need someone who will make the situation less tense.

Find an accounting firm that has everything that you need and can help you to meet your goals next year. A firm that can handle the size and scope of your needs. If you need to, try a few different options until you can find the one that fits the best.

Talk To An Accounting Firm in Pretoria

Many people don’t realize the importance of talking to an accountant while they are planning for tax season because they think that person will handle everything when the time comes – but that isn’t a good habit to fall into. Instead, you want to talk to an accountant as soon as possible.

It is never too early to start thinking about your taxes, even if you don’t have a great deal of money in your bank account or your business isn’t yet making that much money. Make sure you work with a professional that has your best interests in mind and can work with you to ensure your business stays on the right side of the law.

To get started, schedule an appointment today.

Estate Planning: Choosing A Trustee

Posted on by Angel

Trusts are a major part of estate planning for anyone, particularly those who have a significant estate to leave behind when they pass away. Choosing a trustee and setting up a trust is important to many people because it can help to reduce taxes, hold back money, and avoid probate. However, trusts are also quite difficult to set up on your own. It is a major decision to set up a trust, and an even bigger decision to determine just who your trustee will be. A trustee can be an individual, individuals, or a financial institute. No matter who it is, there needs to be a lot of thought that goes into the selection.

A Trustee Has An Important Job – That Is Sometimes Boring

Selecting a trustee requires you to be honest about who people really are in your life. Trustees have a significant job to do, and they have legal responsibilities. They need to be able to pay attention to details and get things done in a timely manner. A trustee has to administer the trust to the beneficiaries – exactly as you laid out in your estate plan or will. The trustee has to ensure that everything is handled appropriately and in a timely manner – sometimes this means picking someone who will keep a cool and calm exterior. Your children may be too emotional with your passing, even though they are the obvious choices.

A trustee also has to have a mind for figures and numbers. There is a need to look over investments and distributions once you pass away. If you have minors who are still in school, the trustee may need to allocate funds for college payments, clothing, or transportation. The trustee has to record all of that information and keep it neat and tidy. Anyone who is a beneficiary may request to see the transactions and every penny should be accounted for at all times.

The trustee may want to do some investing on his or her own to help benefit the estate. If this something that you want, you want to choose a trustee who will do so ethically. Most importantly, trustees absolutely need to be fair and just.

Your Trustee Needs To Have Deep Financial Knowledge

There are many people in this world who are smart, but very few people who have the kind of financial knowledge that is necessary to be a trustee. Trustees need to have bookkeeping skills, know at least a bit about tax and trust laws (or be willing to learn), and know about investments.

Of course, you also may want to look at who your trust will be impacting. Some trusts are large enough or set up in a way so that they last generations. Trustees should be on the younger side (and healthy) so that they can work with the estate for a long time. Some people choose to name a financial institute a trustee for this very reason.

Many people want to name a family member as their trustee because it seems appealing or a way to honor your relationship with that person. Some people just want to avoid the extra costs. However, there are very few people who can fulfill all the requirements of a trustee’s job unless they themselves work within the financial sector.

Remember, naming a trustee is one of the most important decisions you will make during your estate planning period. This person is responsible for carrying out your will – so choose wisely.

Talk To An Estate Planning Professional in South Africa

Many people aren’t comfortable talking to an estate planner because it can be somewhat macabre and upsetting. However, it is a necessary part of life for so many people. If you have a business, children, or loved ones that you care about, this is one final way that you can take care of them. You will be able to save them a lot of stress and confusion. In some ways, it is comforting for them to hear about what you wanted.

It is never too early to start estate planning, even if you don’t have a great deal of money in your bank account. Make sure you work with a professional that has your best interests in mind and can work with you to not only protect you while you are alive but to help preserve your legacy once you have passed.

To get started, schedule an appointment today.

Why Accountants Offer The Best Estate Planning Services

Why Accountants Offer The Best Estate Planning Services

Posted on by Angel

In the past, estate planning services focused on planning for what would happen to a person’s assets after they died, but that isn’t necessarily the case anymore. Now, it has more to do with how a person’s wealth will be managed while that person is alive and how everything will be handled after death. Long gone are the days when someone could simply pass down a business or estate to a child or trusted family member. Now, people need to ensure that their estate is healthy and that there will be something to pass on when that time comes.

For those with a business to pass on, it is important to ensure that the business changes with the times and that what is left behind is profitable. To achieve this, you need estate planning services that will help you to reach your financial goals, plan for retirement, and keep your family safe. Accountants are the best option for this – let’s explore why.

Accountants Know Estate Tax Laws

Remember that estate tax laws in South Africa are very complex and change on a regular basis. When tax laws change, accountants are the first to know. As this happens on a yearly basis (if not more often), it is a job in and of itself to stay on top of not only what those laws are, but how they will impact businesses and families. Legislative changes are so common that the best accountants know how to work around them and provide estate planning that will withstand the ebb and flow of regulations.

Accountants know that time is of the essence when it comes to estate planning – nothing is promised. That is why, at the first whisper of a change in the law, they are likely to reach out to make changes. For those who don’t stay abreast of changes, too much time could pass and a change might not be possible.

Even if you are able to track these tax law changes on your own, estate planning services can help to devise new strategies that will complement them. 

Estate Planning Services for Succession

The goal of every business owner is to create something that will last for generations – no one builds a business in hopes that when they die, the business will too. In estate planning, business succession is essential. Often, businesses that do not have clear instructions for succession will fall apart due to conflicting opinions. Planning for business succession early can help immensely.

By working with an accounting firm that is also an estate planning service, you will give yourself ample time to prepare for succession and other future challenges. An accountant will be able to audit your assets and get a better understanding of your business. This accountant may already know about your taxes or at least have an idea of what you will face. He can help to come up with an estate plan that will minimize taxes and conflict. IC Quantum, for example, has helped businesses from many sectors avoid costly business and estate taxes thanks to careful planning.

Top Estate Planning Services in South Africa

The truth is that an accountant is the best possible person to handle estate planning for many people in South Africa. While talking about what will happen after we pass on may seem morbid, it is a necessary part of life for so many people. In particular, if you have a business, children, or loved ones that you want to provide for, this is one final way that you can take care of them. You will be able to save them a lot of stress and confusion – and potentially even money. In some ways, it is comforting for them to hear about what you wanted. 

It is never too early to start estate planning, even if you don’t have a great deal of money in your bank account or you aren’t ready to give up your business just yet. Make sure you work with a professional that has your best interests in mind and can work with you to not only protect you while you are alive but to help preserve your legacy once you have passed.

To get started, schedule an appointment today.

5 Things You May Want To Consider For Estate Planning

Posted on by Angel

If you are looking into estate planning, it can be quite challenging to determine what is important and what isn’t. Whether your estate is absolutely massive or as simple as can be, estate planning is something that you want to do. It can help your family, friends, and business partners to understand what it is that you want to be done with your estate. It can also help to prevent in-fighting over heirlooms, property, money, or businesses. There are so many stories about families that have broken up because they fought over the estate of someone that loved them. It even happens to close families.

So how you can at least try to avoid this? There are some things you may want to consider when you estate plan.

Have You Named A Beneficiary?

When you open a bank account or purchase life insurance, you often have to name a beneficiary. This is the person who will inherit the proceeds when you die. These designations are quite powerful and take precedence over what is stated in a will.

You want to ensure that all of the information is accurate and update it if need be – life changes often dictate the need to add or remove beneficiaries.

Make A Plan To Review It

Many people write an estate plan and then never review it. If you write the plan when you are 50, there is a lot that could have changed by the time you are 80. Consider regular reviews of your estate plan to ensure that everything is up to date. You may also want to make changes when someone passes away, moves away, or there is a change in the relationship.

Does Someone Have Power of Attorney?

One important thing to do when drafting an estate plan is to give someone power of attorney (POA) so that someone can act on your behalf when you are unable to do so. If you do not have a POA, the court system may be left to decide what happens to your estate. By selecting a person or agency to act for you, they will be able to transact real estate, enter into financial transactions, and make other legal decisions for you. 

It is important to know that while you are still in sound mind, POA can be revoked at any time. The person who is assigned those privileges can also step away at any time. 

For many families, the most obvious choice for power of attorney is the spouse or the oldest child. Sometimes, it can be a financial advisor, a family friend, or a lawyer.

How Should Conflicts Be Handled?

When someone passes away, there are bound to be conflicts no matter what. You can decide to select an executor who has the final say in conflicts. No matter what you decide or whom you choose, you may want to be proactive about addressing the sale of items, how proceeds should be split, or who should take care of what in a business.

Speak To Your Family

One of the most important things that you can do throughout the estate planning process is to talk to your family. If you tell them what you are doing, why you are doing it, and how you will do it, it will prevent problems once you pass away. This is especially important if there are decisions that may surprise your family or loved ones.

Talk To An Estate Planning Professional in South Africa

Many people aren’t comfortable talking to an estate planner because it can be somewhat macabre and upsetting. However, it is a necessary part of life for so many people. If you have a business, children, or loved ones that you care about, this is one final way that you can take care of them. You will be able to save them a lot of stress and confusion. In some ways, it is comforting for them to hear about what you wanted. 

It is never too early to start estate planning, even if you don’t have a great deal of money in your bank account. Make sure you work with a professional that has your best interests in mind and can work with you to not only protect you while you are alive but to help preserve your legacy once you have passed.

To get started, schedule an appointment today.

What are the Best Ways to Pass Assets to Your Children?

What are the Best Ways to Pass Assets to Your Children?

Posted on by icq

If you are looking to pass your assets to your children, there are some excellent ways to start planning right now so that you can ensure your children won’t have any problems when you are gone. Even better, you can ensure that the assets you pass on are used properly and to your liking, if that is important to you. While everyone wants to live until their children are old enough and mature enough to responsibly handle their money, that isn’t always the case. Sometimes, estate planning means helping children grow up and get established.

The truth is that there isn’t a “one size fits all” solution to passing assets on to your children. Some people choose to establish trusts, whereas others just give more substantial sums of money or expensive items away now. 

The answers to these questions depend on a variety of factors that you may want to consider. It can include whether you are married, how old your children are, the value of your estate, and whether or not you want to control how your assets will be used.

Regardless, what are the best ways to pass your assets to your children? Here are some of the best options:

Give Financial Gifts While You’re Living

If you talk to your accountant and you have enough money to live out the rest of your life and can still give financial gifts while you are living, you may want to consider it. Not only will it help them to save a bit of money on taxes, but it also allows you to see your money being used and enjoyed by your children. This is a luxury denied to many, and if possible, it is something to consider. 

In particular, it is certainly something to consider for those who do not expect to use up their own money. You will want to do some planning and ensure that you have more than enough funds left over in case something goes wrong with your home, health, or business. Keep in mind that there are rules and regulations about giving financial gifts.  You can only give a certain amount of money before it does have to be taxed.

Put The Money Into Trusts

A trust is a fund that is managed by a trustee for the benefit of a particular beneficiary. The most common trust is established for children who have parents that pass away before they turn 18. These trusts are then used to pay for a child’s expenses until they turn 18, at which time they will gain control. You can also establish some other precedent for which the child will gain full control of their money, such as graduating college or reaching a certain age.

Trusts can be extremely beneficial if you want to manage tax implications and if you have a large estate. They can also be established for a loved one who has a disability. These trusts require care and consideration so that they do not interfere with or compromise governmental assistance. 

Talk To An Estate Planning Professional

Many people aren’t comfortable talking to an estate planning professional because they think it is a somber occasion that means they are near the end of their lives. However, for anyone that has a business, children, or loved ones that care about them, estate planning is necessary. You will be able to save the people in your life a lot of stress and confusion after you have passed. In fact, you may be able to quell fights that so often break up families and businesses.

It is never too early to start estate planning, even if you don’t have a great deal of money in your savings. Make sure you work with a professional that has your best interests in mind and can work with you to not only protect you while you are alive but to help preserve your legacy once you have passed.

To get started, schedule an appointment today.