Estate Planning

Estate Planning

What are some key factors to keep in mind when it comes to tax benefits in an estate plan? Everyone’s circumstances are different, so you need to consider the facts of each individual estate plan. But there are some principles to follow in most cases: Use the Section 4q deduction. Under section 4(q) of the Estate Duty Act, no estate duty has to be paid on anything bequeathed (left) to a surviving spouse. It’s only when the spouse dies that estate duty would have to be paid. Of course, clients don’t have to leave everything to their spouse – some people might not want to do that – but do consider using this deduction in your estate planning.Use the R3.5 million general abatement to its maximum – for example, by bequeathing assets to the value of R3.5 million to a trust. This abatement can be deducted from the net value of the estate, which means only the balance is subject to estate duty.Structure life policies more efficiently. If If structured correctly, a “buy and sell policy” – where a business partner owns a policy on the client’s life (they can buy out the client’s shares in the business on the client’s death) – is free of estate duty. This helps to avoid estate duty on that life policy.Understand capital gains tax exemptions. There’s a R300 000 capital gains death tax exemption – the estate gets the first R300 000 of gains free of capital gains tax. There’s also an exemption of up to R2 million of capital gains tax on the primary residence. How do retirement planning and life insurance fit in to...
Insurance is there to cover uncertainty

Insurance is there to cover uncertainty

It is no surprise that the COVID–19 pandemic has put a lot of fear and doubt in the minds of South African citizens.
Many factories, shops and small businesses have been forced to close temporarily, travel bans have been enforced and individuals are panic buying due to the unknown of what may be next.

COVID-19: Stay safe and rewarded with Vitality

COVID-19: Stay safe and rewarded with Vitality

Staying healthy and keeping others safe should be your number one priority right now. Vitality’s key principles have never been more relevant: exercise if you’re well, eat healthy food, and take preventive measures, like washing your hands and maintaining social distancing. We’re living in unprecedented times, and Vitality plays a central role in helping you stay healthy, with benefits and rewards tailored to our present reality. Our HealthyFood, HealthyCare, and HealthyGear benefits are more valuable than ever, giving members valuable discounts on all HealthyLiving items. And our Device Booster and Apple Watch benefits come in handy for members who would like to meet their exercise goals from home. We’ve taken the following immediate steps to give Vitality members peace of mind during this time Vitality Active Rewards maximum weekly goal drops to 700 points We have lowered the Vitality Active Rewards weekly goal from 900 to 700 Vitality points. This means if you are missing gym workouts, parkruns or myruns, you can still hit your weekly goal in a number of ways. For example, if you track 10 000 steps a day on your smartphone, you can earn 100 Vitality points – the same as when you go to the gym. Your Vitality gym discount is safe We are adjusting the 36-visits-in-12-months rule so that if you’ve been going to gym regularly until now, your discount won’t be affected if you decide to skip gym over this period. Look out for more details in the upcoming newsletter. Your HealthyLiving discounts will not be impacted We are pausing the 12-month cycle rule for members to do their Vitality Health Check...
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