INTRODUCTION
Taxes are something you can't avoid, even in death. When planning what will happen to your property and assets after you pass away, it's crucial to understand the different taxes that might apply. The three main taxes your chosen person (executor) will have to handle are income tax, capital gains tax, and estate duty. But there are other expenses to consider as well, like outstanding debts, maintenance and accrual claims, and more.
These taxes are imposed on the transfer of wealth or assets from the deceased person's estate to the people who inherit them, whether they have a will (testate) or not (intestate). In simple terms, when someone passes away, their assets go to their heirs, and this transfer could be subject to estate duty and other taxes. On the other hand, capital gains tax is a tax on the profit you make when you sell or transfer an asset.
To figure out if your estate will face these costs and how to manage them effectively, you'll need a thorough assessment. Fortunately, Myprotector provided you with the insights you need from a free assessment.
THE SOLUTION
The MyProtector Estate Indemnity Policy offers a financial solution to protect your estate from other estate administration costs that fall outside of your membership suite of services. We will establish a Testamentary Trust derived from your legal will, guided by our professionals, ensuring your estate costs are covered, leaving your assets protected.
POLICY COVER
WHAT DOES MY LIFE COVER DO?
As far as insurance goes, life cover is pretty straightforward (subject to the terms and conditions of the policy): if you die, the cover amount (or sum assured) is paid out to whoever you choose (your beneficiaries). With life cover in place, you’ll know that there will be funds available to cover your financial commitments and to care for your family when you’re gone. That’s the Different Life peace of mind.
WHAT WILL THE FUNDS BE USED FOR?
Our attorneys will collaborate with you to outline the issues that need further attention and funding in your legal will. Typically, these funds cover:
| - Transfer duty Tax |
- Capital Gains Tax |
| - Donations Tax |
- Estate Duty Tax |
| - Income Tax |
- Property Rates & Taxes |
| - Maintenance & Accrual Claims |
- Maintenance of assets |
| - Valuation and appraisal costs |
- Outstanding debt |
| - Funeral and burial costs |
- Professional fees |
You can specify how you want your trustees to pay these costs through the testamentary trust with the guidance of our legal team.
POLICY CRITERIA
THE MONTHLY SUBSCRIPTION
The policy is limited to the following criteria:
1. Whole life level premium policy
2. Sum assured is dependent on your risk profile, so you need to do an insurance assessment
3. Maximum entry age 65 years
4. Normal underwriting done by Guard Risk
5. Beneficiary is the member's created heritage archive trust
6. Trust is managed by the MyProtector Group
WHO CAN ACCESS THIS POLICY?
Anyone will have access to this bespoke policy.
THIS PRODUCT IS STAND ALONE, ALTHOUGH OTHER PRODUCTS CAN BE LINKED TO IT
DEATH BENEFIT
Triarc will pay the insured benefit as a lump sum on the death of the life insured:
Minimum sum assured: R100 000
Maximum sum assured: R10 000 000
FUNERAL ADVANCE
A portion of the death benefit will be paid within 48 hours of receipt of the claim. The amount that is paid is 20% of the death benefit up to a maximum of R50 000.
BENEFICIARIES AND SESSIONS
Beneficiaries may be appointed by the policyholder. Collateral cessions are allowed.
BENEFIT TERMINATION EVENTS
The payment of the full benefit amount. The cancellation of the policy or benefit as a result of:
- Any event covered in the policy contract
-
Notification of the policyholder
-
The death of the insured life
-
The end of the benefit term
PREMIUM INCREASE OPTIONS
LEVEL PREMIUM PATTERN
BENEFIT INCREASES: 0%, 3% AND 6%
COMPULSORY 5% PREMIUM PATTERN
BENEFIT INCREASES: 0%, 3% AND 6%
WHO UNDERWRITES THE POLICY?
Triarc Insurance (FSP45009), is a registered financial services provider, underwritten by Guardrisk Life FSP76, a licensed Life Insurer. This means you’re partnering with a reliable, stable insurance brand that’s been around the block, and who you can rely on.
MYPROTECTOR'S VALUE ADDED SERVICES
LEGAL WILL
We will revise your existing will or create a new will for you at no charge. Our executors will include clauses to discount the fees to guarantee that the high court forces compliance.
SERVICES IF YOU HAVE AN EXISTING myPRO POLICY
1. Your myPRO services administer the policy benefits as part of your estate administration.
2. Your MyProtector attorney will contact you and discuss revising your legal will to cater for this policy.
3.
Your life policy payout goes into the 'late estate' and is used for the above mentioned costs.
4. MyProtector's executors diligently execute your instructions and distribute funds according to your legal will.
5. Any executor services that fall outside of your myPRO policy will be charged at 2.5%.
SERVICES IF YOU DO NOT HAVE AN EXISTING myPRO POLICY
Standard estate administration services and fees apply, but with the following discounts:
1.
Executor fees are charged at 2.5% of the estate to execute this policy.
2. Conveyancing attorney fees are discounted by 40% by our attorneys.
HOW IT WORKS
When you pass away, the policy pays the full sum assured value into the 'Late Estate' and gets used by the executor to wind-up your affairs. Your executor will administer and manage the funds on behalf of your listed beneficiaries. Myprotector will report to the high court and show how the funds are being managed within the law and in the most effective and efficient way possible.
|
