Online Reporter
Trust Maanda
Legal Position
PLANNING on what happens to your estate when you are dead or in some way incapacitated is estate planning.
It is a process of managing your assets and their distribution after your death or when you are somehow incapacitated.
Estate planning involves writing wills, setting up trusts or some other form of designation of beneficiaries.
It has advantages.
Your wishes will be respected and it minimises taxes and costs. It gives you peace of mind and protects your loved ones. Planning for the future of your loved ones for during your absence by death, that is the height of your love for them.
You do not want to leave your loved ones in penury just because you were not able to think about their welfare for when you would have left the earth.
We have seen rich men’s widows and orphans scrounging for a living when the assets were grabbed by uncles and aunties who were nowhere near where the man was struggling to make his money.
This is all because the deceased did not leave instructions for how his wealth should be distributed and benefit his family.
Your family must only mourn your death; not because of your being disorganised. They should not mourn because of the chaos into which your death plunges them.
Estate planning acts to preserve family wealth. It protects the property from being grabbed by
underserving or unintended beneficiaries. It provides for a surviving spouse and children and other intended beneficiaries.
When done, estate planning caters for funding of children’s or next generation’s education. Estate planning has obvious advantages. Estate planning leaves legacy behind and arranges for any other causes including charitable causes.
Estate planning helps in wealth creation and management. In doing estate planning you will be establishing a strategy that adapts and evolves as circumstances change.
For example, you can plan your wealth by setting up a will. Will writing is important as a part of estate planning.
You can provide for who becomes the guardian of your children in the event of your death. This you can do by way of a written will.
You can appoint an executor of your estate in the event of your death.
Estate planning can impact on taxes that may be levied on your estate and you can set in place tax minimising plans.
You can use estate planning to arrange for who will be authorised to act on your behalf in the event of your incapacity or disability. If you do not arrange for this, the law will appoint one for you.
Estate planning helps in identifying and appointing beneficiaries, investment and retirement accounts.
You can establish a succession plan of your business.
Estate planning can arrange for how potential cost of long-term care and health care expenses can be taken care of.
Assets that can make up your estate and subject to estate planning include, houses, cars, stocks, furniture, livestock, life insurance, pensions, things, and even debt.
You can also write a will as part of estate planning. A person who dies without leaving a will is said to have died intestate while one who dies leaving a will, dies testate. A will is a document made by a person during his life time, in terms of which he bequeaths his property to persons he chooses and directing how he wishes his estate to be distributed.
One of the advantages of a will is that the testator can nominate the executor in a will. In that case an executor can only act after he or she is appointed by the Master or the Assistant Master having jurisdiction over the district where the deceased was ordinarily resident. If you do not mention an executor in your will, the Administration Estates Act provides for how one can be appointed. If you do not plan, some people will plan for you.
The choice of executor who will be appointed may not be what you would appoint if you had appointed one in your will.
A will sets out the desires of the testator on how he wishes his assets to be inherited. It lists the property and the beneficiaries he or she intends to inherit the property. Besides following the formalities and form required by the Wills Act, a will should include the following like, the full name of the testator, the full legal name of the beneficiary (your heir), your intent to bequeath your property to your heir, the full description of the property, the full address of the property and legal description of the property as found on the deed, and if possible, the deed number.
Estate planning protects your property and looks after the welfare of your loved ones beyond your grave. It is necessary.
Trust Maanda is a legal practitioner and a partner at Maunga Maanda and Associates. He writes in his personal capacity. He can be contacted on +263772432646.
