SANLAM TRUST Plan Ahead

1. SANLAM TRUSTPlan Ahead

3. Agenda • What regulates the division of assets at death? • The Law as it stands today. • Intestate Succession. • What is a will • Why a will • Who can draft a will • Get the professionals. • Sanlam Trust Offering and Value Proposition

4. ESTATE PLANNING TRUST ADMINISTRATION WILL PLANNING YOUR LEGACY ESTATE ADMINISTRATION SETTING UP OF A TRUST

5. HOW IS MY ASSETS DIVIDED AT DEATH? • Will (Testate) • Intestate Succession • Beneficiary nomination (contract) • Retirement Funds

6. INTESTATE SUCCESSION-HOW DOES IT WORK? • Individual looses control as to how his/her assets devolve – Intestate Succession Act prescribes; • Have no Executor appointed, Master must agree to appointment of Executor- takes much longer than if Executor nominated in will; • Can have detrimental effects when assets devolve!

7. DETRIMENTAL EFFECTS! • Couple married in community of property- means they each own 50% of the joint estate. • 50% of the joint estate will devolve according to the laws of intestate succession.

8. EXAMPLE: ICOP • A and B have 2 children. They have a house worth R500 000 and other assets worth R300 000. A thus has an estate of R400 000 as does B. B dies. • R400 000 ( estate of B) will devolve according to the Laws Of Intestate Succession. The Law says that A will receive R125 000 or a child’s portion, whichever is greater.

9. EXAMPLE… • R400 000 divided by 3 (2 children plus the spouse) =R133333.33 • PROBLEM: 50% of the house will be split 3 ways; Surviving spouse will own 50% of house with the minor children; If surviving spouse wants to sell house, surviving spouse will have to approach High Court for assistance as the upper Guardian of all minors.

10. WHAT IS A WILL? A legal document in which is recorded the free and independent wishes of the testator/testatrix in respect of the distribution of the assets in his/her estate.

11. Or WishesIntentionLoveLast

12. WHY A VALID WILL? • Standard legislation applicable to all estates; • Side step the Law of Intestate Succession; • Minor children • Make provision for minor dependants ( trust) • Appoint guardian • Easy administration process • Ensure liquidity in estate to cover estate duty, exec fees and costs; • Appointment of executor; • Negotiate executors fees

13. WHY A VALID WILL CONT… • Sufficient cash • Liabilities (accrual claim, maintenance claim, administration costs, etc.) • Estate duty • CGT • Income Tax • Legacies • Fair and just towards dependants

14. WHO CAN MAKE A WILL? • Anyone who has attained the age of 16 • Must be able to understand the nature and effect of actions.

15. WHY ALL SOUTH AFRICANS NEED A WILL? • Apart from legislation, changing cultural dynamics in South Africa following demise of apartheid and inception of current political dispensation; • Change in market dynamics • Time delays • Cost to family members • To save on tax (apart from legislation changes which means no will/intestate, need for structuring and estate planning-starts with a will.)

16. IMPORTANCE OF CHOOSING AN EXECUTOR • Cannot wind up and estate if you have no legal qualifications of experience in this field; • Master of the High Court requires a professional; • Peace of mind – replace risk with zero risk • Important to note that the executor must be around when you pass away

17. Sanlam Trust HistoryWho are we? • Wholly owned subsidiary of Sanlam Life • Sanlam Life acquired the trust division of Boland Bank • Launched – 1 August 1996 • Boland Board of Executors started in 1900 in Paarl • One of the “Big Five”

18. Sanlam Trust HistoryWho are we? Size of the business today: • Number of original wills in safe keeping - 230 000; • Administer around 1400 deceased estates per year; • Asset value of R1 700 000 000 managed in trusts; • In the region of 400 umbrella trusts for various retirement funds including SAB Miller, VW and SAMWU • Financial guardian for more than 10 000 minor children

19. Sanlam Trust HistoryWhere are we? • National foot print • Offices in: • Bellville – Sanlam Head Office, Bellville • Pretoria – Sanlam Office Park, Lynnwood • Johannesburg – Hyde Park, Dunked • Durban – Embassy Building, CBD • Port Elizabeth – Sanlam Office Park, Newton Park • Bloemfontein – RoseStad Building, CBD • George ? • Estate and Trust consultants support brokers through the whole of South Africa

20. Sanlam Trust Products and ServicesWhat do we do? • Will and Estate planning • Drafting, revision and safe keeping of wills • Estate administration • Trust services: • Drafting and registration of inter vivos and umbrella trusts • Trust deed auditing • Trust administration and trusteeship • Trust vehicles: • Inter vivos • Testamentary • Umbrella - Retirement Fund industry • Guardian • Offshore fiduciary services – limited jurisdictions • Intermediary support and training

21. Sanlam’s value proposition to you • High level estate-planning advice • Formal estate planning on an ad hoc basis • Competitive executor’s fees as negotiated in will • Competitive interest rates on Estate Late cheque accounts • Fixed bank charges on Estate Late cheque accounts • Bank transactions in RSA free of charge • Revolutionary new menu pricing for inter vivos trusts • Various investment portfolios for specific trust needs

22. Sanlam Trust Offering • Peace of mind • Quick and Easy winding up of the estate • Professional service • Simple • Accessible • Trust Services

23. Were do I go now Your Trusted Sanlam Financial Planner

25. Thank you Questions