April 2020


Leverage April 2020
Focusing on disallowed contributions, we look at steps for calculating the maximum tax-deductible contribution, which indirectly results in the calculation of the disallowed contribution. We share a taxpayer’s journey who made the disallowed contribution during his lifetime, and close things off with the impact that the disallowed contribution can have on the deceased taxpayer’s estate plan and how beneficiary decisions can in fact threaten the success of the estate plan.Download


Myriad’s Last Survivor Benefit
In order to provide for estate liquidity and other needs on the death of the last surviving spouse or partner, the Last Survivor Benefit solution exists as a benefit not limited to spouses. On the death of the first dying, the policy will continue in the name of the survivor and the future premiums will be waived on that benefit.Download
Approved vs. Unapproved Group Life
When doing an estate plan, it is vital to ascertain whether the group life benefits are approved or unapproved, as this will have a direct impact on the income tax and estate duty consequences on the pay-out. If this is ignored it can leave a serious shortfall in the provisions made.Download
Retirement Funds Tax Rules
Proceeds upon retirement, retrenchment and death (including payments made in the event of disability), contributions and general rules pertaining to Retirement Annuities, Pensions Funds, Provident Funds, Preservation Funds and Living Annuities.Download

Business Assurance - One Pagers

Asset replacement
Most businesses use the depreciation deduction as a book entry in order to reduce their taxable income and therefore the amount of tax to be paid each year is reduced as well. While this makes accounting sense, what happens to the asset at the end of its useful life? A solution is for the business to take out an investment policy (or an alternative investment vehicle) to accumulate capital to assist with the repurchasing of assets.Download
Buy and Sell agreement
Business owners have the need to ensure that there will be continuation of the business upon the death or disability of a co-owner. They further want security in knowing that the disposal of their business interests will be dealt with in an orderly manner. To avert risk, the co-owners of the business enter into a buy-and-sell agreement.Download
Key person protection
Effective and well trained staff, especially those with specialist skills or knowledge, is vital to a business’s success. If such an employee were to die or become disabled tomorrow, what would be the cost to that business? Key person protection is an arrangement where an employer insures the life of a key employee for the purpose of compensating the business for the loss of income it would suffer in the event of that employee’s death or disability.Download
Preferred Compensation
A high staff turnover is a costly business risk as it results in loss of productivity, intellectual property, employment costs and training costs. Therefore it is important for a business to retain and motivate its employees. An incentive scheme that rewards key employees with tax-free bonuses every five years and eliminates the cost of staff turnover and reduced productivity, can be a very effective solution.Download
Protect against business interruptions
The disability of the business owner will generally have a detrimental impact on the business and will impact not only the short term income flows but also the long-term sustainability of the business. If the business cannot maintain its business overheads it will surely face losing clients, employees and potential insolvency. These policies can help sustain the company for a short period of time while assessing the overall impact and planning for the future of the company. Download