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  1. #21
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    Default Re: My Will - What is fair

    Koebelwagen in post #19 is 100% level headed in his approach to the "solution"

    Your wife needs to be taken care of...she is the one you married for better or worse and till death do us part. She is going to be responsible for taking care of you as you grow old together and she will be next to your death bed expecting that you would take care of her financially afterwards.

    If you don't a clever lawyer is going to step up and assist her to claim against your estate in terms of the "Surviving Spouse's Act" which may leave nothing for your kids!

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  3. #22
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    Default Re: My Will - What is fair

    I have not read the full post, so this sort of approach might have been posted. However this is how my late father approached our situation.

    Backgroud:
    My mother passed away 6 years before my father dis. Dad, shacked up with somebody else after mom passed on as there was no ways he could have lived alone. He felt very indebted to the new lady in his life, and wanted to look after her posthumously. So he adopted the following approach;

    Solution:
    Broadly - He set up his will in such a way that a testamentary trust was established when he passed, with my brother and I as trustees. The trust is constructed in such a way that all his assets were converted to cash, which was invested. The living beneficiary (lady friend) benefits from the interest gained off the investment and when she passes away(or gets into another relationship), the trust dissolves and the capital is divided equally between my brother and I. Basically, the capital is to be preserved and the net proceeds of the investment is paid to the living beneficiary.


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  5. #23
    Join Date
    Nov 2013
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    Default Re: My Will - What is fair

    Quote Originally Posted by Andrew Leigh View Post
    Louis,

    could you explain this in some more detail please, also mentioning the costs and tax burden?
    Disclaimer: I am not an expert in this regard, I am replicating what I learned from my own trust. Any corrections will be welcomed.

    Basically a trust will come into existence on your death. The trust will have only the powers granted to it in terms of the trust deed, and therefore you can specify how the assets should be managed, what would happen on the wife's death, who is entitled to what etc.

    Persons that can benefit from the trust's assets are called beneficiaries, and only beneficiaries can benefit from the trust. Good practise is to have yourself, wife, children, as well as the children's offspring as beneficiaries. Example, if wife is still young and remarries, any children from that marriage will not be beneficiaries. However, any grandchildren from your children will be. If one of your children re-marries, the children from that marriage will be beneficiaries. If your child marries and the spouse already has children, these children cannot become beneficiaries. As soon as a direct descendant (your grandchild, great-grandchild etc.) is born, he/she automatically becomes a beneficiary.

    The trust is run (managed) by trustees. These could be the children or independent persons, even a company (e.g. auditor), or a combination thereof. The beneficiaries can get a vested interest, e.g. wife can live in the house; wife must receive living allowance of x amount adjusted for inflation. A vested interest is a right and cannot be taken away. Beneficiaries can also get discretionary rights, e.g. the trustees decides to give each child an amount, or they decide to assist one of the children who is struggling.

    It is a bad practise to "rule from the grave", and might even be illegal. A trust gives you the option to structure what happens with all assets.
    Louis Farrell

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  7. #24
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    Default Re: My Will - What is fair

    I am always hesitant to post on threads like these, because those who have been in a consultation about a last will and testament knows that the second biggest challenge is to get to grips with the family and financial setup of the client. Only once that is understood, can one even remotely consider a suitable and properly tailored last will and testament.

    But the biggest challenge by far is to Keep It Simple Stupid.

    Testators mean well with their last will and testament, but the moment you complicate it unnecessarily, for any reason whatsoever, it prolongs the administration of your estate.

    Yes, threads like these can give you ideas, but at the end of the day you will have to sit one on one with a qualified professional.
    Cheers
    Willem Greyling

    "When the wise man points at the moon, the imbecile examines the finger" - Confucius

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  9. #25
    Join Date
    Nov 2013
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    Default Re: My Will - What is fair

    Quote Originally Posted by MANDREAS View Post
    Yes, threads like these can give you ideas, but at the end of the day you will have to sit one on one with a qualified professional.
    I cannot agree more. Get ideas or pointers, and then you consult with the professionals. Especially when setting up a trust. The trust deed must be bullet-proof.

    Keep it simple: In my case (existing trust), my testament states that "the trust inherits everything"
    Louis Farrell

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  11. #26
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    Default Re: My Will - What is fair

    My late FIL was a widower before and married my wife's mother years later. He then rewrote his will to include her. Having 2 adult sons, the eldest objected but the younger said it was fair. Fast forward, he died and estate was divided up into 3. To be honest, MIL did deserve a third as FIL was a bit of a difficult chap ie diabetic, alcoholic.

    I would consult with kids to fairness of estate shares. I would also see what kids wanted as heirlooms etc and put that into the will. Just my ideas.
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  13. #27
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    Default Re: My Will - What is fair

    Quote Originally Posted by LouisF View Post
    I would set up a testamentary trust and bequeath everything to the trust. This type of trust is established upon your death.

    The trust will be managed by independent trustees that cannot benefit from the trust except for agreed-on payment for services rendered.

    The children and wife, as well as direct offspring of the children are the only beneficiaries (preventing "aangetroude aanhangsels" form having a claim to your estate.

    The Trust Deed can be written to meet all your wishes, e.g. wife would have the right to live in the house, use the car(s) and household contents. Trustees could be tasked to ensure that all expenses related to the house are paid, plus a fair living allowance.

    When the wife passes away, the trust can be dissolved and the assets equally divided, or the trust can continue.
    +1000, been there at a young age ...
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