Estate Planning is Fatal (Boedelbeplanning)

If your estate planning doesn’t include a plan for the immediate and effective conversion of your estate to a trust, then you have the wrong financial planner. Get one who understands and lives the Treoc Way!

After the last budget speech, people with estates are in a far worse position than before, because capital gains tax, which is automatically triggered upon death, was increased from 10% to 13.3%.

The total cost now accompanying estates is:
Estate duty: 20%
Executor’s fees: 3.5%
Capital gains tax: 13.3%

That gives a total cost of 36.8%! Terrifying!

These costs are payable only in cold, hard cash. So everything ends up on an estate auction (boedelveiling), where it gets sold for peanuts. As it is, few estates survived this in the past, and in the future even more assets will go to waste in this way. If you’ve ever wondered why you don’t have Great-grandfather’s farm anymore, now you know. It’s the estate duty and costs that destroy it. So people who help you to plan your estate are therefore helping you to arrange for your assets to be destroyed by the government and the life insurance companies, because it is only them and their lackeys – the auctioneers and liquidators – who make money.

I recently read an article entitled “Estate planning and expert financial advice are important assets”. The author writes that it’s stupid to put your assets into a trust, because a trust pays 40% tax. That just shows how stupid this “expert financial advisor” is. If he would just swallow his pride and come to one of my workshops, he would see that the tax on a trust’s profits is less than it would be in your personal capacity – irrespective of the official .........................

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