INTRODUCTION OF OUR SERVICES
The function of the traditional accountant and tax practitioner has changed significantly in recent years. The flood of compliance legislation means that your responsibilities increase with every change in the law. It’s impossible to maintain an adequate level of knowledge and expertise in all areas to offer the broad spectrum of quality service to clients.
The vast majority of clients’ current estate planning provides very limited to no protection against increased exposure to estate taxes and other taxes. This has a detrimental effect on the surviving family, who may have to give a significant portion of their inheritance to the taxman. Estate planning also takes place unchecked among all the “advisors” (from extremely competent advisors to those giving advice around the braai). The advice is not always correctly implemented and executed under someone’s monitoring.
The current state of administrative processes in the country and the decline of vital government departments like the Master’s Office requires a new approach to estate planning to ensure that the next of kin are immediately placed in control of the estate’s assets. This process has its challenges and becomes increasingly critical by the day.
The estate planning process should start early in the client’s life and be adapted according to their unique circumstances and legal changes. Estate planning later in the client’s life becomes more difficult and expensive as certain values establish or assets are already vested, and circumstances make it hard to unravel. Each client’s case is unique and should be approached as such, there isn’t one solution for everyone’s situation. We use various effective methods and oversee their implementation. Our team includes specialists in their respective fields with over 20 years of experience each.
During our working processes, the following will be evident:
- Experience and professionalism
- Informed legal interpretation and applications
- Latest technical knowledge and practices
- Quality control and increased assurance obtained through independent opinions
- Planning according to each client’s personal needs and interests
We prefer to support the client together with the accountant or tax practitioner in obtaining peace of mind for the client and their family by ensuring that the estate is structured in the most tax-friendly and cost-effective manner for the circumstances and needs. There will also be a smooth continuation of all processes necessary for the next of kin to proceed without unnecessary disruption.
Here are a few misconceptions commonly encountered in the industry:
- Statement: “My grandfather left the farm to my father, and I will leave it to my son, etc.”
Our comment: A bad cycle, expensive and uneconomical model to follow with negative cash flow consequences.
- Statement: “If a tax problem is identified, we obtain a life policy to pay the taxes.”
Our comment: This principle is expensive and only works until the client no longer qualifies for a life policy.
- Statement: “Everything is in a company, and then the business continues as before and after death.”
Our comment: Often, it’s overlooked that the shares will fall into the estate, and the value becomes taxable, and without the necessary cash flow, assets will have to be sold.
- Statement: “We have trusts, companies, and wills, but they do not support each other.”
Our comment: These cases offer limited to no long-term protection.
Note that effective and protected estate planning is still entirely achievable in the following cases:
- “I am at an old age and sick, and assets are vested in my estate.”
- “Moving my assets now is expensive and not economical.”
- “Circumstances beyond my control, but my assets need protection.”
Our services mainly consist of:
- Effective estate planning
- Risk evaluation of current circumstances
- Restructuring of assets and other business entities
- Implementation of cost-effective tax practices
- Technical and practical support and consultations for effective solutions.