May 2021


Leverage May 2021
We highlight why a valid Will is not necessarily an executable Will – an important difference that should be considered when doing an estate plan and planning a Will. We also delve into how this could affect estate liquidity and provision for dependants, particularly when aligning needs and interests with provisions. In closing, we outline the executor’s fees implications on common policy structures and the importance of keeping your eye on this when determining the sum insured. 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