Estate Planning covers the way in which one’s property and assets are distributed on death. The first step towards effective estate planning, is the drafting and signing of a Will. Sometimes, it is advisable to establish a trust to reduce the estate duty liability. A child’s inheritance can also be held in a trust, until reaching a stipulated age, at which time the assets can be passed on or inherited.
For larger or fast-growing estates, there are several financial planning techniques in which estate duty can be saved, including:
- The sale of growth assets
- The transfer of growth assets to a trust or company
- The swapping of growth assets for assets of equal value but lower growth rates