Category: Wills

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.