The Hidden Cost of Cancer

The Hidden Cost of Cancer

As the leading cause of death globally, cancer holds more than just physical and emotional implications – it can also have a devastating impact on your finances.
Statistically, one in four South Africans will be diagnosed with cancer or have someone close to them diagnosed. The financial burden of dealing with a dread disease like cancer can be massive – the out-of-pocket medical costs, as well as unforeseen non-medical expenses like in-home carers and additional childcare.

Discovery Run the Rhythm 947

Discovery Run the Rhythm 947

Get ready to move your body at the Discovery 947 Rhythm Run. Whether you are an avid runner, a social runner or a haven’t-run-yet runner, it’s time to start planning for the greatest fitness event of the year that will make you sweat, both on the track and on the dance floor. After your run around the track, the race ends with an exciting after-party where you can let loose to the rhythm of Jozi with 947 DJs and personalities.

Tax impact – Capital Gains Tax

Tax impact – Capital Gains Tax

Any interest earned on your investment is included in your gross income for that particular tax year, even if you have re-invested the interest. This means it forms part of your income and will be taxed according to your income tax rate.
You do, however, qualify for an interest exemption, so you will not pay income tax on the first R23 800 of interest if you are under the age of 65, or R34 500 if you are over 65.

Your minor children and the taxman

Your minor children and the taxman

Investing on behalf of your children is a generous act of foresight and, if you can afford to do it, opens up future opportunities for them. Unit trusts are a common choice for many parents due to their flexibility and the easy access to the invested money. But what does the fine print say about tax and ownership rights?

Marriage in community of property

Marriage in community of property

Is pension interest automatically an asset in the joint estate? Compiled by: Lize de la Harpe, Legal Advisor: Glacier by Sanlam This publication is intended for use by intermediaries. Introduction One of the ordinary consequences of a marriage in community of property is that a joint estate is created in which both spouses have an equal share. What is however not always properly understood is exactly what constitutes an asset in the joint estate. This is of particular importance when the joint estate is dissolved upon divorce. In this edition we will look at the applicable law and recent case law on this topic. Sharing in the joint estate at divorce A marriage in community of property is the automatic matrimonial property regime for most marriages in South Africa. From the start of the marriage all assets and liabilities are incorporated into a single, joint estate and all assets accumulated during the marriage also become part of the joint estate. Both spouses are joint owners and are thus entitled to an equal share of the joint estate, subject to certain exceptions. When a court grants an order of divorce the community of property between spouses comes to an end and the joint estate is divided. The Divorce Act 70 of 1979 (hereinafter referred to as the “Divorce Act”) governs divorce proceedings in South Africa. Section 7(1) of the Divorce Act specifically empowers the court to make an order in accordance with a written agreement between the parties (so called “settlement agreement”). Alternatively, in the absence of an agreement between the parties, the court is empowered to order division of...
Annuities and Divorce

Annuities and Divorce

Lize de la Harpe, Legal Adviser: Glacier by Sanlam, 8 April 2014 Introduction The question often arises why a spouse can’t claim from an annuity in the case of a divorce. The answer lies in the applicable legislation – specifically the Pension Fund Act and the Divorce Act. Pension Funds Act 24 of 1956 The aim of section 37A of the Pension Funds Act is to protect a member‟s pension benefits from his/her creditors, and it expressly limits a fund‟s ability to deduct amounts from a member‟s pension benefit. As a general rule, a fund may only make a deduction from a member‟s benefit if such a deduction is allowed in terms of the Pension Funds Act, the Income Tax Act and the Maintenance Act. This general rule is, however, subject to the exceptions set out in section 37D. Section 37D(1)(d) states a registered fund may “deduct from a member’s benefit or minimum individual reserve (as the case may be) any amount assigned from such benefit or individual reserve to a non-member spouse in terms of a decree granted under section 7 (8) (a) of the Divorce Act, 1979 (Act No. 70 of 1979)”. Section 37A of the Pension Funds Act must therefore, in the context of divorce proceedings, be read together with the applicable sections of the Divorce Act. Divorce Act 70 of 1979 Section 7(7) of the Divorce Act provides that a ‘pension interest’ (as defined in section 1) will be deemed to be a part of the assets at divorce: “7) a) In the determination of the patrimonial benefits to which the parties to any divorce...