Deathly Certain Clichés

By Advisor Michal Park

We all know the only thing we can rely on in life is death and taxes, but what exactly are the types of taxes associated with death? Death duties themselves no longer exist, but what other types of taxes do we have to be aware of?

The taxes applicable to a bereavement depend on a number of factors, including whether the assets form part of the deceased's estate, when the asset/s were purchased, what the assets are, whether the beneficiaries are dependents or non-dependents...and the list goes on.

My challenge this week is to try to wade through the guff and simplify things, so by the end of this Hudson Report, we should all have an understanding of the applicable taxes*. This subject may prompt a number of you to revisit your own Will, or perhaps even establish that Will you've been putting off for several years.

 

The will is the single most powerful document relating to death, as it dictates how you wish your assets to be distributed. You have spent enough time, money and energy accumulating your wealth, you may as well have the final say in who gets what. If you do not have a Will, your assets will be distributed to your spouse, children and other near relatives. If no dependents or relatives can be found, your estate goes to the government. If that's not incentive enough to get your estate in order, then I don't know what is!!

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