Tag: 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.

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.

5 Times You Should Talk To An Accountant

Posted on by Angel

Many people are hesitant to hire an accountant because they just aren’t sure that they need one, or they are afraid that they will go to the accountant and then feel like they aren’t “good enough” or they don’t have enough money to actually use that accountant. The truth is that people need accountants more than they realize, and almost everyone should have an accountant on call. Even if you do not have a regular relationship with that person, there are times when you are going to need him or her on your side.

Here are just a few cases when you should talk to an accountant: 

You Are Considering Real Estate – Buying Or Selling

Buying or selling real estate, no matter where it is, is a serious decision. If you are in the market to make some purchases, whether it is a first home, a second home, a home for your children, a commercial property, or a rental property, you may want to talk to an accountant first. He or she will help you to make decisions based on your income and savings that can help you to fund your next venture.

Even better, an accountant can minimize your taxes on the purchase or sale of the property.

You Have To Do Your Taxes

If you are doing your taxes either for yourself or for your business, it may be in your best interest to have a professional help you. Whether you file with the wrong information, use the incorrect form, or just don’t know how to claim something, an accountant can help to sort out all of the details.

Most people who try to handle their taxes on their own end up doing something wrong – whether they ever find out or not. Even sitting with an accountant for a few minutes can really help you. Currently, SARS is looking in every corner for taxes to be collected. SARS is requesting supporting documents more and more. Your accountant would be up to date on how to submit all the relevant documents in the prescribed formats.

You Are Making A Large Donation

If you are considering making a large donation in the upcoming months or even years, you may want to talk to an accountant. He or she will be able to guide you through the process that will be mutually beneficial – the recipient will get the donation and you may even be able to claim it on your taxes.

Making a large donation is not as simple as one thinks – so it is better to cover all of your bases if possible.

You Want To Retire

This should seem obvious to many people, but if you want to retire, you should talk to an accountant. They will be able to help you understand your financial situation and see if it is even a reality. Even better, they will be able to help you plan for the future so that you can be comfortable throughout your retirement.

You Have Children

If you have children, you probably want to put aside some money for them. If you are thinking about setting up a will or even just making it so that you have money in savings should something go wrong, you may want to talk to an accountant.

Talk To An Accounting Firm in Pretoria

Many people aren’t comfortable talking to an accountant because matters of money can be so personal. However, it is a necessary part of life for so many people – especially if you want to pass on money, retire, or just have enough to be comfortable for the rest of your life. If you have a business, children, or loved ones that you care about, there are times when you are going to need an accountant on your side. You will be able to save them a lot of stress and confusion when the time comes for you to do something serious.

It is never too early to start thinking about your future, 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, help you start a business, or do something totally unexpected.

To get started, schedule an appointment today.

3 Things To Plan For In Retirement

Posted on by Angel

Retirement is a “pie in the sky” dream of so many people working today. Some people don’t think that they will ever be able to retire, but they could be wrong. There are some things you can plan for so that you can be ready when you retire. If you do these things, you won’t have to worry about what the future will hold or having to go back to work unless you really want to. These are the steps that you can take today, right now, to get to where you want to go. Some of them are easy things, like simply thinking about what the future will hold for you. Others are more complicated and may require help from a financial planning service.

Here are some tips to plan for retirement now:

Make Sure You Enter Retirement Debt Free

There are many people who enter into retirement with debt, but that can make the entire situation far more stressful. Eliminating debt is a good way to start retirement feeling comfortable – and get the chance to actually retire and not simply move into another job. If possible, eliminating credit card debt, mortgage debts, student loans, and even medical debts should be a priority. Now, that isn’t to say you cannot retire if you still have these. Instead, you may be able to plan how you will make your payments. If you can think ahead and budget these numbers, you will still be able to have a happy, healthy retirement.

Knowing the amount of debt you have, how you can pay it off, and how you can manage it once you retire will be helpful.

You Need To Plan For Healthcare

Healthcare is a major concern for so many people because it can be expensive. Even if you are in the best of health right now, the future can hold quite a bit. You want to look into your family’s health history and determine whether or not there is something you need to plan for right now. Diabetes, cancer, heart problems, and other common medical conditions tend to run in families. Even if you do not face these problems, planning for them is helpful. You don’t have to think about yourself only – your spouse, your family, and even business partners should also be taken into consideration. You may be healthy, but you will need to pay for healthcare for your spouse. Or maybe you think you can retire in 10 years, but your business partner gets sick in 9 and you cannot do it when you want to. All of these things absolutely must be considered.

What Do You Want Your Retirement To Look Like?

Probably the most important thing to plan for in your retirement is just what you want it to look like – do you want to travel the world? Do you want to be able to spend time with your family? Do you want to continue to play some role in your business? Will you stay in South Africa or move? What will your hobbies be? If you are able to answer these questions, it will be easier for you to plan for your retirement. The answers to these questions will dictate quite a bit about what retirement means for you.

Don’t think that one answer is necessarily better than the others – they each lead you down a different pathway. 

Top Accounting Services in South Africa

The truth is that an accountant is the best possible person to handle planning for retirement for many people in South Africa. While talking about what will happen after we retire seems out of reach, it is a necessary part of life for so many people.

It is never too early to start thinking about retirement, 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 plan for the future but to create a plan to actually get there.

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.