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Part 3: Wills and Testaments 101 - Gather questions on facts

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Based on the facts given in PART 1, I have the following questions, please help with providing answers:

 

What is the current market value of the 2011 GTI?

 

What was the cost price of his primary residence? The market value is now R1,700,000.

 

What was the cost price of the 3 bitcoins?

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Joe owns a small bakery which he is the sole proprietor off but his brother in law has a 5% ownership -> please explain this a bit.

 

If you are a sole proprietor, then you own the business and the business is JUST on your name. You can't let somebody else have 5%.

 

If his brother in law do have 5%, then it is a partnership.

 

Please explain a bit more. :)

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If Joe dies now, he want to be cremated and want to use his local AVBOB. The costs for his funeral will be R20,000.

 

He do have an AVBOB policy and it is worth R10,000.

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1 Bitcoin is worth R12,791

 

So the three bitcoins will be worth R38,373

 

How does this work in the will? Should the value matter concidering a bitcoin is like a virtual piece of gold or jewelry in that if you leave your wife 1 gold bar she inherits the gold bar although that gold bar's price fluctuates it does not change the fact that she gets 1 physical gold bar.

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Please provide me with details how the rest of the assets should be bequethed (inherited)... I will then proceed to draw up the will and estate planning. :)

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Joe owns a small bakery which he is the sole proprietor off but his brother in law has a 5% ownership -> please explain this a bit.

 

If you are a sole proprietor, then you own the business and the business is JUST on your name. You can't let somebody else have 5%.

 

If his brother in law do have 5%, then it is a partnership.

 

Please explain a bit more. :)

 

Joe is an interesting person who does not play by the rules. He is the sole owner of his business, but he has an informal agreement with his brother-in-law to lease the premises, but instead of paying a fixed rate Joe instead pays his brother 5% of the Net profit for that month, that way Joe feels he is covered if there is a bad month and wont then miss a payment creating family issues with his Brother-in-law, his Brother-in-law is a wealthy man with plenty of land and agreed to the 5% out of principle because Joe refused his offer to use the premises free of charge.

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So, who will inherit what if Joe passes away now. Any specific suggestions?

 

Joe's wife will inherit all the money in his bank account and the physical stuff in the house and storage that he owns.

 

His children will each inherit one bitcoin.

 

His investment money will be handed over to his wife to manage, but when the children turn 21 they are each entitled to 20% of the funds and his wife 40%

 

^Is that possible?

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How old are the 3 kids?

 

Mary (from 1st marraige), Mark and Scott

 

Remember Joe is 40 years old now.

 

Mary is 19

 

Mark is 15

 

Scott is 16

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Joe also has an RA with Sygnia

 

Who does that go to?

 

From this https://www.sygnia.co.za/docs/default-source/Individuals---Savings-Options/sygnia-retirement-annuity-fund-term-sheet.pdf?sfvrsn=6

 

DEATH BENEFITS

In the event of your death prior to retirement, the value of your investments in the Sygnia Retirement Annuity Fund will be distributed to your dependants

and/or nominated beneficiaries. Please note that dependants take precedence over nominated beneficiaries in terms of law. If no dependants are found

and no beneficiaries were nominated, the death benefit will be paid to the deceased member’s estate as a lump sum. The value is determined on the date

of the liquidation of your investments. The dependants and/or nominated beneficiaries may elect to receive the benefit as an annuity, as a lump sum or as

a combination of a lump sum and an annuity. Annuity payments will be taxed as income in the hands of the dependants and/or nominated beneficiaries at

their marginal tax rates. Lump sum payments will be subject to the relevant retirement tax tables applicable to retirement fund lump sums.

 

 

Joe nominates that this goes to his current wife.

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