estate planning executors
Estate Planning
Death is a sad inevitability. Have you considered what would happen to your family if you were to die unexpectedly? Would they have access to the resources and funds that they need, and would your estate be executed according to your wishes?
Preparing for the inevitable
It’s possible to add funeral plans into your estate planning or will. Funeral and estate planning are similar in that they can make your funeral much easier for your loved ones, as they won’t have to fear the legal hassles which could follow your death if you haven’t made proper provisions.
When a loved one dies, it’s hard enough for the family without the added stress of financial uncertainty. Often the deceased’s assets, including the money in their bank account, are frozen and may be inaccessible for quite some time until all their affairs are in order.
It makes sense to plan accordingly to make sure that your family is well taken care of financially and that your final wishes are carried out in a dignified and fitting fashion.
Planning and budgeting for a funeral
The expense of a funeral alone can significantly add to the family’s burden. With a funeral insurance policy which pays out a cash lump sum upon the death of an insured person, it’s possible to ensure that you or your loved ones are given the dignified burial that is deserved, without placing additional strain on the family during this difficult time.
Once the funeral is over, especially if the deceased was the sole breadwinner, the family may still struggle for some time to find their feet while the affairs of the estate are being sorted out.
Certain funeral insurance plans offer a range of optional benefits which can help in this regard. For example, some funeral plans offer a Monthly Provider benefit which will pay a fixed monthly cash benefit to your family for a period of 12 months after your death. This money can be used to purchase groceries or for other essential monthly expenses.
It’s important to have a will
Your will determines how everything you’ve worked so hard to build up over the years will be distributed. Your heirs can be disadvantaged if you don’t make the appropriate provisions in your will. Without a proper will, your estate could undergo severe administrative, tax and legal problems – possibly resulting in financial losses.
In your will, you determine how your estate and assets will be divided amongst your heirs. You should also nominate an executor of your estate to ensure that all of this happens according to your wishes. If you don’t make these provisions in a will, your assets will be divided according to the Intestate Succession Act, which may not be desirable to you or your family.
It’s advisable to speak to an experienced and accredited funeral insurance advisor to find discover the best insurance solutions to ensure that your family are taken care of, even after you are gone.
About the Author
Hollard Funeral provides affordable funeral insurance in South Africa. A cash lump sum payment upon the death of the insured will assist the beneficiaries with the financial burden that often accompanies a death. A number of optional funeral plan benefits are also available, including the Monthly Provider benefit.
Estate Planning or lack of it?
My Uncle is 90. My brother, sister and myself are heirs to the estate. My father is the executor and has power of attorney. Other than the usual $12000 yearly gifting no planning has taken place. I understand the estate tax laws change in 2010. What shoud we do?
estate value: 2.5 million
Speak with a financial planner with expertise in in estate planning immediately. A will is ok, but if you are talking about $2.5 mill you need to consider options like a family trust. There are 2 reasons for this:
#1) a Will is public knowledge…anyone can open the paper and see when a will reading is.
#2) A Will is contestable in the courts.
Why are those 2 points important?
Let’s say I live next door to your uncle for examples sake…I read that he passed away and the will reading is on Wednesday. I show up at the will reading with my wife and state that “Good ol’ Jimmy (your uncle) told me a little while ago that since I was such a great neighbor and always cut the lawn and helped him out so much with everything, that he was going to leave me $1 mill. when he died. I guess he didn’t get around to putting that in his will” My wife and my buddy claim they witnessed this conversation (I cut a deal with then that I would split the money with them if they help me out…) with your uncle….it goes to court. Chances are I would not win the case for a million bucks, but it would settle out of court and your lawyers would offer me a couple hundred grand (that should have gone to you instead) to go away, plus you would end up paying a whack load of legal fees in the battle (that should have gone to you)…
If there is no other documentation a will is a good thing, but in a case of a somewhat large amount of an estate like this, you need an estate planners advice to create a plan for any potential tax bill’s that might be passed on when the estate changes hands, etc.
If your uncle is 90, get on the horn right now and get some kind of plan in place.
Estate Planning : Must an Executor Notify a Beneficiary?
How to Choose the Right Executor for Your Estate
The executor’s job recently became more complex because of a provision in the tax bill signed by President Obama in December.