Why estate planning is so important

The crux of Estate planning is protecting your family and loved ones. Sadly, it seems like many people devote more time to planning a vacation, which is most likely a sign of the level of discomfort they feel around the subject.

Deciding who will inherit your assets after you are gone is usually a difficult topic to broach, but it is one of the most important life decisions you can make. Without estate planning, you cannot select who receives your belongings and assets that you have spent your whole life accumulating.

Estate Planning is Not Only for the Wealthy

Many people think that estate planning is only for the rich. To the contrary, without the humblest of plans in place, settling your affairs after you have passed on could have long-lasting consequences for the ones that truly matter in your life. Dying intestate could mean that your family goes without money until your affairs are sorted, which could take months, if not years.

Even if you do not have multiple properties, large-payout insurance policies, or a garage full of antique motor vehicles, there needs to be an order in place, authorised by yourself, informing your family of who receives your humble abode, your transportation, or your small business.

At Efficient Wealth, we care about what happens to your family and finances once you have gone. Consider the short notes below to reassess your position and avoid potentially devastating consequences for those whom you leave behind.


4 Reasons to Consider Estate Planning

Here are four reasons why you should consider estate planning:

  1. Estate Planning Protects Your Family and Beneficiaries – Many middle-class families need to plan for when the inevitable happens to the breadwinner of the household. It is not only for high-net-worth individuals, but it is also essential for any person with the responsibility of a family to initiate estate planning to take care of their loved ones.
  2. Estate Planning Protects Younger Children – Very few people want to think of dying young, but if you are the parent and breadwinner in a household where there are young children, being prepared for the unthinkable is better than leaving them with nothing. This is where we can help with the notarising of a will in your name.
  1. Tax Considerations – Estate planning is about protecting your heirs, which, in part, means protecting them from the South African Revenue Service. Part of estate planning is the transfer of assets and other belongings to dependents, which is a process that must be protected by creating the smallest possible tax burden for them.
  1. Prevent Family Feuds – Preventing fights before they occur is part of estate planning. Preparing your estate in advance enables you to choose who controls your finances and assets if you become mentally incapacitated, for example. In the event of your death, everyone knows where they stand, and this will prevent arguments later.


Who to Turn to For Efficient Estate Planning

At Efficient Wealth, we know that one of the core, but often neglected, aspects of financial planning is the effective planning of your estate for when you are no longer there to provide for your family. Among our many offerings, we include:

  • Estate and succession planning
  • Wills consultation and drafting
  • Inter-vivos and testamentary trust consultation
  • Estate taxes and transferrals
  • Deceased and insolvent estates administration and liquidation
  • Independent secretarial services
  • Independent trustee services

If you need effective, efficient assistance with your estate planning, contact us at Efficient Wealth.