Can you afford to die?

On Sunday I got this question from a follower on Tiktok:

“If I would give my home, valued at R10million, to my child as an inheritance, how much would it cost?”

I would believe that this is a very common reality for most of us. You might not own a property worth R10million, but you might have a total estate with a value of R5million, or R10million.

How do you get that inheritance to your child and how much would it cost?

If you and I don’t do the proper planning for this a scenario, and furthermore, fail to make the necessary financial provisions, we will dump a mess on our kids. They might not even be able to inherit that stunning property that you want him to have.

Here are 2 important things for you to consider:

Financial provisions – Have you made them?

Is there a bond over the property? If there is, that bond will have to be paid and cancelled when you die.
With a R10million asset, like a house, there will most probably be Estate Duty (tax to SARS) payable.
Keep in mind that there might be capital gains tax as well.
You will have an Executor that will administer your estate and he is entitled to a fee.
With a property, there will be a transfer from your estate to your heir. That transfer will incur transfer fees.

Logistical issues – Have you thought about them?

If your child is still a minor, inheriting such a property could be a big problem.
Have you appointed legal guardians to care for your child?
It might be a wise consideration to create a trust in your Will (a testamentary trust), so that the property can be vested in the Trust and the minor child be a beneficiary of the property.

I see hundreds of people, on a regular basis, that are so deep in trouble because their parents and grandparents did not address these issues.

Don’t be like them. You can be the difference.

So, how do you solve this?

Make sure your Will is in order. My Will Seriesis a good starting point.
Do the necessary estate planning with a trusted attorney and/or financial planner that is worth his salt.
- I know a good attorney and I can propose a financial planner that specialises in estate planning to make sure your financial provisions are in order.