WHAT IS ESTATE PLANNING?
Estate planning refers to the process of arranging, managing and dispositioning a testator’s affairs in such a manner that it optimizes their aspirations, whilst at the same time, benefitting the respective beneficiaries to such a degree that estate duty and donations tax is minimised, whilst adequately protecting the testator’s assets against any unwanted creditors.
It is vital to start with estate planning as soon as possible, as it is easier to develop an estate plan in accordance with the testator’s wishes when there are as little as possible assets. By starting at an early age, one can ensure that an estate plan is put into place to not only guide a testator in terms of acquisitions, but it can also be beneficial for minimising donations tax and transfer duty.
Estate planning, however, should not be considered to be the same concept as tax planning. Although tax planning is deemed to be one of estate planning’s objectives, estate planning is a process that suit various fields of a testator’s needs.