How to reduce the legal costs in your estate

“Do something today, that your future self will thank you for.” ~ Sean Patrick Flannery.

This isn’t one of those motivational blog posts about getting up & going to the gym a million times until you see the results. In actual fact, you will never see the results of your estate plan being rolled into action, as you will obviously not be here. However, your loved ones that you leave behind will certainly bear testament to the efficiency & provisions that were left behind.

Dying, just like living, is an extremely expensive business. That is why here at Winsure Consulting we have partnered with Capital Legacy who are the largest Estate Planning company in South Africa. We believe in partnering with like minded companies that seek to drive down costs and increase efficiency with a clear focus on innovation for the direct benefit of their clients.

Capital Legacy has developed an incredible Protection Product that is tagged onto their wills which allows for all your legal costs (Estate Duty, Executors Fee’s, Master Fee’s, Conveyancing Fee’s, and if applicable Testamentary trust fee’s – as well as the ongoing fees for the life span of that Trust) to be paid upfront, without it having to touch your assets! That sure is a mouthful…. But it such a revolutionary concept that it begs the question, if you don’t have your will & estate planning solution through us yet, what are you waiting for?

The fact that all these costs are paid upfront allows the estate to be wound up in 6 months or less. This is a far more attractive proposal when compared to traditional executors who will search under every rock to ensure they build the estate up to the highest possible value which directly increases their fee.

Let’s assume Mary is a single mother aged 35, with a daughter Ann aged 5. Upon Mary’s passing, she owns a house valued at R2 000 000 fully bonded. Mary also has R7 000 000 life cover in place of which R2 000 000 is used to settle the bond, leaving her estate with R5 000 000 cash provision for her daughter, Ann.  Mary has appointed Ann as her beneficiary, and for her entire estate to be protected via a Testamentary Trust (a trust that arises upon Mary’s death in terms of her will) which will be in force until Ann turns 25 years old. The below block highlights how much of Mary’s estate would go towards legal fees alone (and there is no way getting around this!):

Executors Fees

                282 100

Initial Trust Fees

80 500

On-going Trust Fees *20 years

2 126 629

Conveyancing Fees

                   25 875

Total Calculated Fees

2 605 104

 

Almost 40% of Mary’s initial estate would be swallowed up by these massive fees leaving Ann not properly protected for schooling/ varsity etc.  However, the good news is this could have been avoided!  If Mary used Capital Legacy’s Protection Plan via Winsure Consulting, all the above mentioned legal fees would be covered and Mary’s estate of R7 000 000 would be untouched by these legal fees– leaving the proceeds for Ann’s benefit.  Over & above this, Capital Legacy would also assist with liquidity of up to R130 000 for Ann within 48 hours of Mary’s death, as all of Mary’s bank accounts would be frozen.

ryan walsh