drafting a will and setting up a trust

Transcription

1 drafting a will and setting up a trust fiduciary services

2 momentum fiduciary services The importance of a professionally drafted will A will is one of the most important documents that you can create because it speaks for you when you are no longer around. After your death, your loved ones will have to start the process of dealing with your assets and the things you own. A will is your instruction to your loved ones that explains what you wish to happen to your assets (house, property, money in the bank, savings or investments) and who should receive which asset or what amount of money from that which you have left behind. Making sure that your will is professionally drafted is equally important. If it is unclear and confusing, it can cause unnecessary difficulties for your family. Confusing or unclear instructions can lead to challenges and legal action from people who may feel that they are not getting what they should. This may result in increased costs for your estate in terms of any potentially unnecessary legal fees, estate duty or income tax. What are the risks of not having a will? There are numerous risks of not having a will. They are: Delays in dealing with your estate which could affect your family if they are relying on their inheritance for an income. Without a will the beneficiaries of your estate will be determined according to the laws of intestate succession. This law determines the distribution of your assets to your closest blood relatives. Your assets may therefore be sold or split up against your wishes. Each family situation is different, and some of your assets could be given to someone in your family that you did not intent to benefit from your estate. If you live with someone but are not married to them, the law will not necessarily recognise your commonlaw spouse as a beneficiary of your estate unless you have left a will naming them as a beneficiary. Without a will you also cannot leave a specific item to a specific family member or friend. Page 2 of 8 momentum fiduciary services march 2013

3 If you are divorced and pay maintenance to a former spouse or children from a previous marriage, your estate could face substantial claims unless you have provided for maintenance in a validly drafted and executed will. If you have minor children and die without a will, anything they are entitled to receive will be held in the Guardian s Fund until they turn 18. This means that any assets are sold and the money is held in this fund. Financial planning and drafting your will Momentum Fiduciary Services considers your will to be the cornerstone of your financial and estate planning. Very often we put enough life insurance and investments in place for our family, but we don t leave sufficient instructions on how such provisions should be dealt with when we pass away. Such provisions include, for example, setting up a testamentary trust for minor children and having the life insurance paid into the trust for their education and well-being. Drafting a will With Momentum Fiduciary Services, drafting a will is simple and convenient. We guide you and your financial adviser through each step. This is to make sure that your will achieves your wishes and is practical to apply. Our will drafting and safe custody service covers: the receipt of instructions to draft your will, preparation of the document, dispatch of your will to you for signature, and receipt and retention of your will in safe custody. momentum fiduciary services march 2013 Page 3 of 8

4 Trusts remain one of the most flexible and tax effective vehicles to aid the estate planning and asset protection objectives of wealthy and high net worth families. Page 4 of 8 momentum fiduciary services march 2013

5 Setting up a trust Trusts remain one of the most flexible and tax effective vehicles to aid the estate planning and asset protection objectives of wealthy and high net worth families. Our fiduciary specialists can advise you of the benefits of a trust in relation to your particular circumstances and needs. Our services include the drafting and registration of: inter vivos (family) trusts, special trusts (for minors or for beneficiaries suffering from a disability), charitable trusts, and other specialist types of trusts. Testamentary trusts are created in a will and start operating on the death of the testator. Inter vivos trusts are established by you during your lifetime. Where an inter vivos trust is registered, it is essential that the trust and your will are aligned and that they are able to give effect to your stated objectives and wishes. Important: Once a trust is established it must be properly administered and the trustees must correctly comply with their fiduciary duties. We can assist you with this process. momentum fiduciary services march 2013 Page 5 of 8

6 The uses of a trust Trusts can be set up for various reasons and customised depending on your needs. Trusts may be set up for the following purposes: Protection and preservation of assets such as property, artwork and other investments or business interests for the next generation. Charitable purposes or other special causes. Minor beneficiaries: -- either to hold cash and investments that can pay an income to minor beneficiaries for schooling or university, or -- to hold assets, such as a house, for those beneficiaries. Maintenance commitments in a divorce settlement. A disabled dependent or an aged parent who may rely on you for financial support but who may be unable to manage money or assets on their own. The process of setting up a trust Our fiduciary specialists can work with you and your financial adviser to guide you through the process of setting up a trust, which includes: deciding on the trust structure that is most suited to your needs, preparing the documentation required, facilitating the execution of the trust deed and related documents, and registration of the trust with the Master of the High Court. Page 6 of 8 momentum fiduciary services march 2013

7 More about us Momentum Fiduciary Services launched its exciting new range of fiduciary services early in 2012, after a strategic decision was made by Momentum to reacquire Momentum Trust Limited from the FirstRand Group after the unbundling of Momentum from FirstRand in We use the very latest technology to ensure that the best service levels are achieved. We are committed to offering clients service levels that are speedy and efficient, without compromising on quality. Our team of highly skilled fiduciary and tax specialists enable us to provide a full range of professional and innovative services to our clients. With our access to Momentum s strong financial adviser network, Momentum Fiduciary Services offers solutions that are integrated into the financial planning process and aligned to the needs of our clients. As such, we work together with your financial adviser who is included in every step of the process and usually acts as the primary link between us. Ask your financial adviser to arrange a consultation with one of our fiduciary specialists at one of our national offices. Contact details Momentum Fiduciary Services Tel: Fax: momentumtrust@momentum.co.za Website: momentum fiduciary services march 2013 Page 7 of 8

8 Disclaimer: Opinions expressed in this document are those held as at the date appearing in this material only. The information and opinions provided are of a general nature and are not intended to constitute advice as contemplated in the Financial Advisory and Intermediary Services Act. Some information used to prepare this document is from third party sources and whilst every effort has been made to ensure the accuracy and validity of the data, Momentum cannot guarantee the accuracy or completeness of such information, nor can it guarantee that such information is always up to date. Momentum is not liable or responsible for any use of this document or to any other person or entity for any inaccuracy of information contained in this document or any errors or omissions in its content, regardless of the cause of such inaccuracy, error or omission. Momentum Trust Limited 268 West Avenue Centurion 0157 PO Box 7400 Centurion 0046 South Africa Reg. No. 1917/001569/06 Momentum, a division of MMI Group Limited, an authorised financial services and credit provider (FSB 6406) Momentum Trust Limited, a wholly owned subsidiary of MMI Holdings Limited