For most people, a primary objective is to ensure that no more tax is paid than necessary. The aim is to relieve the heirs of estate duty/inheritance tax. Equally important, however, is to minimise taxation on capital gains and appreciation in the value of the estate’s assets.
When dealing with real property, it is often necessary to decide whether the property should be transferred inter vivos or through the estate, and whether it should be transferred at the lowest permissible value in order to pass on either a taxable or tax-exempt gain to the next generation. Conversely, it must be assessed whether it is preferable for the estate to retain certain assets if a future estate may qualify for tax exemption. Naturally, many other tax-related considerations may also be relevant.
Naturally, many other tax-related considerations may also be relevant.
These tax considerations serve the overall purpose of maximising the net value of the inheritance.
Many parents also reflect upon whether the inheritance should be distributed equally or whether certain heirs should be favoured. Should certain assets, properties, or businesses remain within the family? Should special consideration be given to stepchildren, financially disadvantaged children, or others with special circumstances? Additionally, some may prefer that the inheritance be distributed only after the passing of the surviving spouse.
Estate planning often requires a careful combination of tax, property, and inheritance law, while at the same time maintaining a sharp focus on the testator’s wishes.
PrivatRevision has extensive experience in estate planning. We also collaborate with a number of attorneys who have particular expertise in family law and the administration of estates. We can therefore assist with planning, execution, and – if desired –administration of the estate in accordance with the testator’s specific wishes when the time comes.
Please feel free to contact us for further information or to arrange a non-binding initial consultation.
