AN INTEGRATED APPROACH TO

ESTATE PLANNING

Estate planning conjures a variety of emotions: worry, fear 2. THE NEEDS OF THEIR BENEFICIARIES
and sadness, to name a few, making it an easy topic to defer. It is important to consider the needs of each of the
Most people avoid talking about death, especially their chosen beneficiaries. What might happen when your
own. Instead of looking at how assets must be divided and clients are not around to help those who have always
dealt with after death, it might be easier to take a different relied on them? If they worry about their dependants
approach. We believe that it is better to start with the coping without them, it is critical for their will to capture
bigger picture before narrowing down your focus to your the support they want to continue to provide. Minor
final decisions. Start by focusing on your clients’ objectives children, family members with disabilities, or those not
and the future they want for the people they care about. financially literate could all need ongoing assistance
with their financial affairs and even their daily living
You will have to discuss the following aspects with your
arrangements.
clients:
3. WHO WILL ASSIST THEIR BENEFICIARIES
1. WHO THEY WANT TO INCLUDE IN THEIR
WHEN THEY ARE NO LONGER THERE?
WILL
The good news is that there are people that can look
Determining who is significant will underpin how
after your clients’ heirs. It is crucial to understand their
you draw up an estate plan. Who are closest to your
last wishes and to create a team with the right skills
clients? Who do they want to leave a legacy to? Who
and knowledge to execute them correctly. Role players
do they feel responsible for? Are there any charities or
in such a team would include:
organisations they wish to leave a bequest to?
• You in your role as a qualified financial planner – to
This is the emotional aspect, thinking about who and deliver a financial strategy that will give beneficiaries
what means most to them, putting themselves in the an income to cover their needs for as long as
shoes of their loved ones when they are no longer with necessary.
them. If your client has a young family, they will most • Trustees (if a trust is created) – to carry out the
likely want to provide for their children’s education, terms of the trust and make decisions about trust
living expenses, and give them a home to live in. If assets in the best interests of all beneficiaries;
their family is more mature, they might not have to experienced and independent trustees are neutral
take these types of considerations into account and to family dynamics and can often add a lot of value
can decide to bequeath more of their assets to their by diffusing sensitivities and building cooperation.
favourite charity. • An executor – to fulfil the instructions of the will;
ideally the executor will implement the estate plan
Once you have identified their beneficiaries, you and
and keep the will up to date; an executor will have a
your client can roughly allocate a percentage of the
good understanding of the client’s intentions and
estate to each beneficiary.
will also be familiar to the family.
4. THE VALUE OF THEIR ESTATE unpleasant topic will at least no longer be a burden.
When you have determined your clients’ goals, their Your clients will have peace of mind that their affairs
beneficiaries, and what they want to leave for each of are in order and that their loved ones are taken care of.
them, you can start looking at the detail:
Old Mutual Wealth Fiduciary’s team of fiduciary
• Prepare a list of assets and decide which assets go
specialists are geared to provide all of these services
to which beneficiary.
to you and your clients. Our aim is to simplify what can
• If there are beneficiaries with special needs, you need
sometimes feel like a complex and daunting task, and
to think about setting up a trust and appointing
to develop a clear solution that addresses your clients’
trustees.
personal concerns and requirements with respect to
• Consider the tax implications, for example capital
their estate.
gains tax or estate duty, and how you can structure
the estate to minimise these.
• Determine what the executorship fees will be. Make
sure that there is enough liquidity in the estate.

5. RELOOK YOUR APPROACH

Once you have gone through the process, go back
and look at your clients’ original objectives. Does your
plan meet their expectations? Does it benefit the right
people and match their intentions for the legacy they
want to leave behind? If not, review your plan.

Estate planning is an important part of any financial

plan and it is crucial to ask your clients these potentially
difficult questions. Once you start exploring and
preparing for possible scenarios after death, this

At Old Mutual Wealth Fiduciary, our premium services are designed for clients with estate values of above R10 million.

However, we believe that every client should have a valid will. We have therefore partnered with Lighthouse Trust &
Corporate to offer an online wills capability that allows you to draft basic, yet robust wills for estates valued below R10
million.

For more information: www.oldmutual.co.za/wealth/solutions/fiduciary-services-wills

CONTACT US
Tel: +27 21 524 4911
Email: fiduciary@omwealth.co.za
Web: www.oldmutual.co.za/wealth/solutions/fiduciary-services

WEALTH
FIDUCIARY SERVICES

Old Mutual Wealth Fiduciary is a division of Old Mutual Wealth Trust Company (Pty) Ltd reg: 1925/002721/07. Old Mutual Wealth is brought to you
through several authorised Financial Services Providers in the Old Mutual Group who make up the elite service offering.