Estate Planning 101: Starting young and ending strong
09 November 2020, Johnny Davis
Estate planning helps you avoid leaving a portion of your hard-earned cash to the taxman when you die, rather than... leaving it to provide for your loved ones. Because as much as you may not want the taxman to benefit from your death, estate duty lies in wait to attack the assets of the unsuspecting.Similarly, capital gains tax, donations tax and all those other “loved” taxes have an impact on what actions you can take with your assets while you are still alive. With these complexities in mind, it pays to be strategic about your estate planning as a young individual while you are building up your wealth.Over the next couple of weeks, I’ll have a detailed look at five estate planning tips to keep your assets safe from the taxman. These tips are - Invest in a tax-free savings account and/or a retirement annuity.Take out life insurance to cover the estate duty and other debts on assets.Form an inter vivos trust (and throw in a private company) to buy your growth lifestyle assets.Use the tax exemptions of the taxman to your benefit.Sign that dreaded last will and testament and focus on the importance of record-keeping.Look out for my next blogs in this series and learn all you need to know!