In South Africa, estate planning is a financial responsibility that is often postponed or placed low on the list of tasks to get done. In reality, estate planning is a critically important aspect of life financial planning. Many people choose to focus on their current financial situation and on ensuring that adequate financial provision is made in the event of illness, incapacity, or death. In addition, there are equally important considerations around investment opportunities and wealth building strategies. However, people commonly overlook the implications of exactly how their estate will be administered after they have passed on. In a very real sense, an estate – usually comprised of assets, investments, and cash – remains ‘alive’ even after your passing and is subject to change depending on the administration of your wishes and instructions.

Why Estate Planning Should be an Ongoing Responsibility

As your lifestyle develops and your financial situation undergoes change, so too should your estate planning strategy take these changes into account. Significant changes may include life events such as:

• Marriage or divorce
• The birth of children
• Emigration
• Receipt of inheritances
• Financial windfalls or proceeds, for example from the sale of a business or properties
• The introduction of a revenue source that may outlive you, such as book or music royalties, or other rights-based income

The Pogir Group’s highly qualified and experienced estate planning consultants will be able to assist you with planning your estate according to your unique requirements and wishes.

Your Last Will and Testament is Only the First Step

Of course, having a legally valid and executable last will and testament is the first step, but it’s also necessary to understand why and how certain aspects of your estate plan should be considered. At The Pogir Group, we have a well-defined process that serves to inform you of all the necessary considerations and requirements, in a straightforward and easily actionable manner. For example:

• We will assist you with the optimal structuring of your estate plan in order to minimise unnecessary costs or financial risks once your will is executed.
• We will also assist you in formulating an effective estate planning strategy, considering the implications of how it will affect your financial planning both while you are alive as well as after you are deceased.
• We will help you define how best to plan for the preservation and distribution of South African and international assets – particularly with regard to stipulations which govern the transfer or disposal of offshore assets after your death.

Holistic, Realistic Financial Planning

When undertaking estate planning, it’s important to factor in your assets as well as liabilities – including potential financial liabilities that may be incurred after your death. Apart from outstanding debts that should be insured, there are financial instruments like life insurance policies, retirement savings plans, and assets held by trusts, that should be factored in. This is just one of the reasons why it’s so important to actively maintain your estate planning, and to regularly update the provisions whenever there are life or financial changes. There is also the issue of beneficiaries, and changes that may need to be made if a beneficiary should be added or changed – and also if a beneficiary should pass away.

Protect Your Loved Ones From Financial Stress

Dying can be unexpectedly costly and can cause your family financial stress in addition to the emotional toll of losing a loved one:

• Funeral costs may escalate, and it’s important to ensure that adequate cover is maintained.
• Estate duty can be considerable, and funds should be available to cover this.
• Capital gains tax may need to be paid, and provision should be made for this.
• The executor’s fees must be considered as well.

A good estate plan should ensure there is sufficient liquidity to cover these and other necessary costs. If this is not done, the alternative may require the forced sale of assets like immovable property. In the event of a house or property having to be sold, your loved ones may incur even more administrative costs and may experience major financial difficulty. When it comes to estate planning, knowledge is power – the better informed you are, and the more diligently you make provision for the unexpected, the greater the protection and peace of mind you ensure for your loved ones.

Estate Planning Made Simple

The Pogir Group’s expert advisors will assist you in simplifying and implementing your estate planning strategy. In essence, this consists of 5 steps:

1. Determining your net worth using a snapshot approach – your assets, liabilities, and income.
2. Formulating actionable steps and setting goals – in other words, decision-making in advance as to how your assets and liabilities will be managed.
3. Deciding on the best and most appropriate estate planning tools – in other words, the most effective way of accomplishing your goals.
4. Setting timeframes that establish when you’d like to accomplish these objectives.
5. Deciding on the execution – in other words, selecting the professionals who will assist you in executing your plan, both currently as well as after you have passed on.

By having an estate planning framework in place, it becomes easier to ensure that your affairs are updated and that any changes are promptly made.

All Your Financial Advisory Services Under One Roof

It pays to ensure that your estate planning is well managed, and that you consult with dedicated professionals who have your best interests at heart. At the Pogir Group, you’ll also enjoy easy access to short term insurance solutions, medical aid schemes and healthcare solutions, employee benefit programs, and expert wealth management. For more information, or to arrange a no-obligation consultation, simply contact us and we’ll assist you, promptly and professionally. Pogir. Smart, with heart.