It is time for a medley of citrus fruits and also to boost our vitamin C levels as we are approaching our cold winter months. Winter has officially opened its doors and it is time for boots, warm jackets, hot chocolate and digging up those hearty soup recipes again. Isn’t it something to be thankful for if you are still working from home during the winter? What a blessing to be able to still have an early start without having to endure the rush-hour traffic to get to the office. If you have a previously ‘normal’ day of leaving home very early to miss peak traffic, keep warm and stay safe.
 
In June we will celebrate our youth and their contribution to the development of our country. Our young people are the future leaders of our country and need to be treasured, be provided for and empowered with good education. They need to see exemplary leadership role models in the older generations for them to become exceptional leaders who have the interests and well-being of all South Africans at heart. While celebrating our youth, keep in mind that provision for a testamentary trust should be made for minor children in a Will.
 
On 8 June we will also be celebrating our shared ocean and our personal connection to the sea on World Oceans Day. The ocean plays a crucial role in our lives and we must be aware of the important ways in which people can help to protect it. We at Legatus Trust believe that all nature is sacred and should be looked after responsibly. Do not believe that a few caring people cannot change the world!

ARE THERE DISCRIMINATORY ELEMENTS IN THE INTESTATE SUCCESSION ACT?

Read more about this in the next edition

IS DEATH THE END OF YOU?
 
Is death the end of you? Surely on earth, yes, but the truth about the answer to this question is that yóu may be gone from your earthly home, but your legacy will create the reality for the loved ones that you leave behind. This reality applies to every client of yours and their loved ones they leave behind when they die.
 
As little as people would like to talk about death, there is a lot of planning to be done and arrangements to be made befóre passing on to ensure the estate process is a smooth one. An ounce of prevention is worth a pound of cure - you can ease the burden of those you love. Remember that they must handle everything that you leave behind in a time of tragedy and great sorrow. Thus, when we talk about death in this scenario, we are really talking about the lives of your next of kin after ‘something happens to you’. The reality is that ‘something’ is not going to happen to you; at some point you are going to die. The best thing that you can do is to be at peace with this thought and to ensure that your financial planning is in order. 
 
Things to get in order 

• The most important is to not leave loved ones behind with a financial burden.  Emotionally everyone must work through their loss individually, but on the financial side, you can make provision.  With life- and estate-shortfall insurances, you can create better financial security for your family’s future. Therefore, it is very important to do thorough estate planning. 

• Ensure that you have a valid, original Will which was drafted and signed correctly.  Do not take shortcuts when it comes to a Will.  Court roles are full of cases where families bicker over Will stipulations causing rifts and never-ending family feuds, all because of ill-prepared Wills. 

• Keep your Will in a safe place and inform your closest relatives – i.e. your spouse and children – where it is.  They would not know if you made another Will elsewhere or if there are different versions of your Will. The effect of an estate that must be administered intestate (without a Will), can have far-reaching effects. A recent court case between FNB Fiduciary and Anappa and Others in KwaZulu-Natal is proof of this. The wife was appointed as executor and in the process a closed corporation was sold. The court ruled that, even though it was an incorrect executor’s appointment, the decisions made by her in that capacity, could not be voided.  If a Will cannot be found, persons that were not intended to inherit, could end up with all the assets. 

• Should your marital status have changed, ensure that it has been updated at the Department of Home Affairs. If they do not know that you are a divorcee or widow/er and it is wrongly indicated on the death certificate that you are married, it is very difficult to change this, especially in the case of an intestate estate. Normally, the Master of the High Court will refuse to issue an executor’s appointment. 

• Ensure that your correct ID number is registered at the receiver of revenue (SARS). During 1986/7, South African ID numbers were changed, resulting in a change of the last three digits. If this has not been updated, the executor will find it difficult to gain access to finalise your tax matters. 

• Keep the registration certificates of vehicles safe and let someone know where they are. If they go missing, the licensing office will require the executor to personally re-apply for them. 

• If you are a member of a closed corporation or owner of a company, ensure that your annual returns have been submitted to the Companies and Intellectual Property Commission (CIPC) and are up to date. Sometimes a business becomes inactive and then the executor must deregister it. Sometimes a business has already been deregistered because of outstanding returns, which makes it difficult for the executor to try and prevent it from being declared forfeited to the state. Either way, this will hamper the administration process. 

• Bank accounts are frozen upon death. Normally, banks would assist with an overdraft, but that will incur interests while there could be more than enough money in the account to which the next of kin could have had access.  Think practically about this and devise a workable plan that will benefit your next of kin. 

These are the main point to focus on, but there could be many more.  The important thing is to think about these aspects and to get proper plans in place to ease the burden on your loved ones.
 
Source: Article by Nico van Gijsen, Landbouweekblad, 20/12/2019.
 
 
PROVIDING FUNDS FOR A TRUSTY HOUSEPLANT
 
A Will gives people great decision-making power over their own property. Normally a person’s assets are accumulated for a spouse, children, other loved ones, charities or even fury friends.
 
But what if you are unmarried, have no children or pets, but you are the owner of a 42-year-old (now 48-year-old) philodendron, which is your prize possession? Rona Scoratow of Pittsburgh is this person. She decided that the plant should not be burned/buried with her, but made provision in her Will for the philodendron to go to a friend, along with a sum of $5000 to care for the plant.
 
At the time of this publication in 2014, Scoratow was still a healthy 63-year-old, but the thought that her beloved plant might not be cared for after she passes on, filled her with horror. When she acquired the plant in 1972, it was only one foot tall, but now all but fills her living room. It is probably still in her care, being looked after lovingly by its owner.
 
 
Until next time!
“The Legatus Times” Team