Finplan 3.1-Principles Of Estate Planning (EBFV301)

PURPOSE

This module aims to equip students with the fundamental theoretical and practical knowledge relating to estate planning within the broader framework of financial planning. This includes the fundamental knowledge of effective succession planning, matrimonial regimes in South Africa, taxation, trusts, and testamentary planning.

LEARNING OUTCOMES

• Understand the introductory aspects relating to the succession and estate planning process.
• Understand the importance of estate planning within the financial planning process.
• Understand and apply all methods and techniques used to calculate capital gains tax.
• Understand and apply all methods and techniques used to calculate estate duty.
• Apply all methods and techniques used to valuate property and deemed property.
• Apply all methods and techniques used to calculate the liquidity in an estate and have a full understanding of the various techniques that can be employed to prevent a liquidity shortfall.
• Understand the provisions and laws governing intestate succession.
• Apply all methods and techniques used to determine the devolution of an intestate estate.
• Understand the provisions and laws governing testamentary succession.
• Discuss the formalities relating to the formation of a valid last will and testament.
• Understand the laws and provisions governing the various marital regimes that exist in South Africa.
• Understand the estate planning consequences of the different marital regimes and the effects of the accrual marriage system.
• Apply methods and techniques used to calculate the value of an accrual claim.
• Describe the different types of trusts and the legal nature thereof.
• Discuss the advantages and disadvantages of trusts.
• Discuss the statutory trust law provisions as set out in the Trust Property Control Act.
• Discuss the essential elements for the formation of a valid trust.
• Describe the requirements that need to be met for the appointments of trustees including a full understanding of the duties of trustees.
• Understand and apply methods and techniques used to calculate the income tax consequences relating to the retention and distribution of trust income.
• Understand how the provisions of Section 25B and Section 7 of the Income Tax Act affect the taxation of trusts.
• Understand the role of an executor and the process in which a deceased estate is administered.
• Discuss the primary objectives of estate planning.
• Understand the various estate planning tools and techniques that can be employed to create an effective estate plan.

CORE CONTENT

• Introducing the principles of estate planning
• Succession Planning and Estate Planning
• Capital Gains Tax
• Estate Duty
• Limited Interests
• The Law of Succession
• Marriage and Matrimonial Property Law
• The Law and Taxation of Trusts
• The Administration of Estates
• Estate Planning Objectives, Tools and Techniques

Evaluation criteria

100% Continuous assessment:

• 2x Semester tests (Final mark weight = 30%)
• 1x Assignment (Final mark weight = 25%)
• 3x Quizzes (Final mark weight = 15%)
• End of module assessment (Final mark weight = 30%)

MODERATION

Internal and external.

Prerequisites

• Personal Financial Planning (EBFV201)
• Mathematics For Accounting (MACV101)
• Business Statistics I (STAV102) OR Financial Mathematics (STAV101)
• Accounting 1A (RV101) or RNCV111
• Accounting 1B (RV102) OR General Accounting 1B (RGV102) or RNCV112

Evaluation criteria

100% Continuous assessment:

• 2x Semester tests (Final mark weight = 30%)
• 1x Assignment (Final mark weight = 25%)
• 3x Quizzes (Final mark weight = 15%)
• End of module assessment (Final mark weight = 30%)