Cilliers Barnard Incorporated

27/02/2020

30/01/2020

When a loved one passes away, it’s a difficult and stressful time for those left behind, and administration of the deceased estate can add to the burden – particularly when you are unaware of the process and how long it may take to finalise the process.

The administration process for estates of a gross value of R250 000 or more is defined in the Administration of Estates Act. The Master of the High Court publishes regulations to which administrators must adhere.

01/10/2018

How fears about land expropriation impact current property marketAug 20, 2018 | Features “The concept of land ownership is part of the cultural, social and economic DNA of the future success of South Africa.” “Which land will be taken without compensation and how will this take place?” are w...

27/09/2018

Research has revealed that the average time homes spent on the market decreased in the first three months of this year. This is an encouraging sign that the market is starting to strengthen.

23/08/2018

It is that time of year again where all income from property investments must be declared to SARS and is subject to income tax, this includes all rental income. Here’s what you need to know.

05/08/2018

Something to keep in mind when submitting your tax returns.

Are you liable for CGT when you sell your property and how is it calculated? Understand the basic difference between capital and revenue gain…

03/07/2018

Constitutional Court confirmed that a section in the Wills Act was unconstitutional.

05/06/2018

Make sure you fill up in time.

South Africa’s petrol price will hit another record high this month, as the department of energy has announced a massive increase in prices at the pumps.

23/04/2018

Giving credit to anyone? You might need to register as a credit provider!

The National Credit Act requires certain money lenders to register as Credit Providers.

In the past, Section 40(1) of the Act stated that you must register as a Credit Provider if:
a) You, alone or together with someone, is the credit provider of at least 100 agreements (other than incidental credit agreements); or
b) The total principal debt owed to you under all outstanding credit agreements (other than incidental credit agreements), exceeds the threshold of R500 000.00.

However, on 11 May 2016 Rob Davies, the Minister for the Department of Trade and Industry, reduced the threshold mentioned in (b) to R0, irrespective of the number of Credit Agreements.

This means that anyone, even with just one loan or Credit Agreement with interest, may be required to register as a Credit Provider.

There are a few exceptions to the rule:
• Incidental Credit Agreements – typically where interest is levied on late payment for goods or services;
• Agreements where the consumer is a juristic person whose asset value or annual turnover at the time the agreement is made equals or exceeds R1000 000.00 or where the credit agreement is for an amount in excess of R250 000;
• Interest or fee free – if the agreement does not provide for interest or a fee to be charged for the extension of credit; and
• Agreements between persons who are not “at arm’s length” – small personal loans between family members, friends etc. will most likely fall outside the terms of the Act.

To determine whether you are required to be registered as a Credit Provider, do not hesitate to contact us.

12/03/2018

INHERITANCE AND MINOR CHILDREN

“My wife and I have a minor son. In our estate planning we would like to have our son to inherit everything should we pass away. How do we ensure that his interests are protected?”

According to our law, minors have restricted contractual capabilities and needs consent from their legal guardians before they can enter into any contracts.

A trust can be set up by the parents to ensure that the interests of their minor child is protected. The trust can either be set up during the lifetime of the parents (inter vivos trust) or by way of a Will which will start operating at the date of death (testamentary trust). The minor’s inheritance will then be administered by the appointed trustees, who have powers delegated as set out in the trust and legislation.

Should a trust not be provided for, any funds will then vest in the Guardian Fund, which falls under the administration of the Master of the High Court. Guardians of minor’s can claim against the fund. This can, however, be time-consuming and leave the child at the availability of the officials.

We recommend that you discuss the options of creating a trust and the trustees you would appoint with your estate planner or attorney.

We would gladly assist you.

Kindly contact our offices at [email protected], or visit our website at www.cilliersbarnard.co.za.

23/01/2018

FAMILY TRUSTS AND YOUR WILL

Can I include my family trust as a bequest in my will?

The safe answer to this question is, no. It would not be wise to include it in your will.

A Trust is in essence a contract between yourself and the trustees, which stipulates that i) certain assets are transferred to the trustees; to ii) manage and control, iii) the assets on behalf of your beneficiaries.

A trust must comply with all the legal requirements, such as that there is an obligation on trustees to act in the best interest of the beneficiaries. Trust assets belong to the trust. You have waived ownership of the trust assets.

Why can I not include it in my will?
You can only bequeath assets which belong to you, and trust assets do not belong to you anymore. Should you have a testamentary hold on your trust assets, you may then nullify the benefits of the trust. If trust assets are seen as yours, it can also have an effect on the tax which you tried to avoid in the estate.

Therefore, rather use the trust which it was established for.

For more info, contact our offices at [email protected], or visit our website at www.cilliersbarnard.co.za.

13/12/2017

Our offices will be closed from Friday 15 December 2017 at 13:00 and will re-open on 8 January 2018 at 08:00.