Enter iProtect structures to hold your assets instead of you and ensure assets or benefits flow to your loved ones in a managed fashion. We now look at the tax and financial ramifications, being capital gains taxes, executor’s fees and estate duties. On your demise, any assets that have appreciated in value since 2001 to the date of your death will attract tax at a maximum rate of 18%.
Enter iProtect structures that ensure you own ZERO, 18% of zero makes sense. As stated above, your estate must be administered and an Executor is legally entitled to levy a fee of 3.5% (plus VAT if they are a vendor, being 4.025%). This fee is on the gross value of your estate. Yes, the gross value, not the net value! Further, the Executor can raise a fee of 6% on income earned by the deceased estate.
Enter iProtect structures to ensure you own nothing, thus avoiding these costs. iProtect have pioneered a 0% executor’s fee if you nominate us to administer your estate. Either way, zero executor’s fees must be the desired result. Lastly, and to rub salt in the proverbial wound, your estate will be liable for estate duty of 20% if your estate exceeds R3.5 million and 25% of any net estate in excess of R30 million.
Enter iProtect structures to ensure you own nothing thereby avoiding these harsh duties. In our experience between 20-45% of an estate can be consumed by capital gains taxes, executor’s fees and duties and in many instances assets must be sold to pay these fees, taxes and duties. We all want all of our hard-earned efforts to flow to our chosen ones instead of parting with a major portion of their wealth.
The fact is we are mortal and not taking action will result in major consequences. We have the solutions.