Newsletter 23 (May 2018)
Congratulations to Rudi Barnard and his team who participated in the 2018 joBerg2c South Africa mountain bike ride in April covering 912 km over a nine-day period. This was a fundraising cycling event in which 750 riders (which included 185 international riders from 29 different countries) participated. Rudi and his team completed the 308 km stretch from Frankfort to Emseni over 3 days within the specified time limits. Very well done!
EFBOE is your access to extensive expertise and capabilities in fiduciary services and is proud to provide a free Wills drafting and safe keeping of Wills service as well.
Contrary to the perception that is being created in the marketplace that an inferior service is delivered by professionals who provide free Wills, we at EFBOE deliver the same excellent service, whether it is a free or fee-based Will. We take personal circumstances into account and cater for specific and ever-changing needs of our clients.
In our previous newsletters we have emphasized numerous times the importance of a Will and the careful thought that needs to go into the drafting thereof. At EFBOE, we believe that it is of fundamental importance that every qualifying individual has access to a properly drafted, valid Will. Therefore, you can feel perfectly at ease making use of EFBOE’s free Wills’ service.
A few positive thoughts to ponder on:
“Try to make one positive change in your life today.
Do the same tomorrow.
You won’t believe your life one year from now.”
"Make good choices today so you don’t have regrets tomorrow.”
“You can’t live a positive life with a negative mind”
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HOW DOES INHERITANCE WORK?
Read more in the upcoming edition!
THE LAW OF INTESTATE SUCCESSION
The South African law of succession prescribes the rules which determine the devolution of a person’s estate after his/her death and all matters incidental thereto. It identifies the beneficiaries who are entitled to succeed to the deceased’s estate, the extent of the benefits they are to receive and determines the different rights and duties that persons (i.e. beneficiaries and creditors) may have in a deceased’s estate.
If the deceased has not left a valid Will or valid document containing testamentary provisions, the deceased dies intestate. Where the deceased leaves a valid Will which does not dispose of all property, there is an intestacy as to the portion not disposed of. In the event of intestacy, the assets are distributed in a definite order or preference among the heirs as stipulated by the Intestate Succession Act 81 of 1987 as amended.
Intestate succession is based primarily on blood relationship. Illegitimacy will not affect the capacity of one blood relation to inherit the intestate estate of another blood relation.
An adopted child shall be deemed:
to be a descendant of his/her adoptive parent or parents;
not to be a descendant of his natural parent or parents, except in the case of a natural parent who is also the adoptive parent of that child or was, at the time of the adoption, married to the adoptive parent of the child.
If an adopted child is deemed to be a descendant of his/her adoptive parent, or is deemed not to be a descendant of his natural parent, the adoptive parent concerned shall be deemed to be an ancestor of the child, or shall be deemed not to be an ancestor of the child, as the case may be.
The following is an outline of how an intestate estate devolves:
If the deceased is survived by a spouse or spouses, and has no living descendants, the spouse inherits the estate; if the deceased was a husband in a polygamous marriage the surviving spouses will inherit in equal shares.
If the deceased is survived by a descendant(s), but not by a spouse, the descendant(s) will inherit the estate.
Where there is a living spouse(s) and descendant(s), each spouse will inherit R250 000 or a child’s share, whichever is greater, (this amount is fixed from time to time by the Minister of Justice). The children will get the balance of the estate, and if a child is predeceased and has descendants, that child’s portion will go to his/her descendants.
If the deceased leaves no spouse or descendants, but both parents are alive, the parents shall inherit the estate in equal shares.
If the deceased has no surviving spouse or dependents but has only one surviving parent, the parent inherits half the estate and the descendants of the deceased parent the other half. If there are no such descendants, the surviving parent shall inherit the estate.
If the deceased is not survived by a spouse, descendant or parent but is survived by descendants of the deceased mother or father who are related to the deceased through the parents, one half of the estate will be divided equally amongst the mother’s descendants and one half amongst the father’s descendants.
If the deceased is not survived by a spouse, descendant, parent or descendant of a parent, the other blood relations of the deceased who are related to him nearest in degree shall inherit the intestate estate in equal shares.
Where there are no relatives, and the assets have not been claimed by a legitimate heir after 30 years, the estate is forfeited to the state.
A child’s share, in relation to the intestate estate of the deceased, shall be calculated by dividing the monetary value of the estate by a number equal to the number of children of the deceased who have either survived him/her or have died before him/her, but are survived by their descendants (plus one, if there is a surviving spouse).
How to calculate a child’s share
: Value of intestate estate is R550 000.
The deceased is survived by a spouse and 3 children.
A child’s share amounts to R137 500 (R550 000 divided by 4 (3 children plus spouse)).
The child’s share is less than R250 000. Therefore, the spouse will inherit R250 000 and each child will inherit R100 000. (R550 000 less R250 000 to the spouse, and the remainder is divided by 3).
: Value of intestate estate is R1 250 000.
The deceased is survived by a spouse and 3 children.
A child’s share amounts to R312 500 (R1 250 000 divided by 4 (3 children plus spouse)).
The child’s share is greater than R250 000. Therefore, the spouse and the 3 children will each will inherit R312 500.
If the deceased dies intestate and a minor inherits, such portion will be held by the Guardian’s Fund at the Master of the High Court until the child reaches majority at 18 years of age. The Guardian’s Fund only accepts cash inheritances, therefore, the Executor could by forced to sell assets. Only in very extreme cases, will the Guardian’s Fund accept fixed property.
Marriage in Community of Property
Where Intestate Succession applies in a case of marriage in community of property, one half of the estate belongs to the surviving spouse and will not devolve according to the rules of intestate succession.
This explains the main concepts of the Law of Intestate Succession. The complete Act can be viewed online at www.justice.gov.za/legislation/acts/1987-81.pdf
Reference: Funeral Guide
OLDEST UNWORN LEVI JEANS
Solomon Warner was a pioneer who was born in the 1800’s. An Arizona historian, Jim Turner, said that he was the first to sell American goods in Tucson. When the Butterfield Stage came through, whatever was needed, had to be bought from Solomon Warner. He passed away in 1899 and left behind a wooden “heirloom” trunk which was passed down through his descendants. The trunk now belongs to his great-great-grandson, Jock Taylor.
Inside the trunk, probably amongst other things, was a brand-new pair of 44-37 Levi jeans which Warner probably thought pretty mundane at the time. This Levi jeans is now thought to be the oldest unworn pair of jeans on the planet, 124-years old to be exact. In 2017 Levi’s offered Jock $50,000 for the jeans. Although a dealer in old jeans, Brit Eaton, confirms that vintage jeans can be worth a small fortune, he doubts if Jock will get $100,000 for it, as it is too big. He says that collectors normally like to wear their vintage jeans. Jock, however, is hanging onto his britches for the $100,000 notch.
Until next time!
The “Let’s Talk EFBOE” Team