Senwes Scenario June/July 2018 - Page 52

FINANCES Importance of financial needs analysis R aymond Peters has just bought a house in Houghton worth R12 million. Raymond tells the finan- cial planner that he needs bond cover for R12 million, to be ceded to the bank in the event of his death. He assures the financial planner that he doesn't want a financial needs analysis (FNA). Raymond is the financial director at The Professionals (Pty) Ltd. The financial planner sells Raymond a policy structured as follows: Policy owner, payer and life assured: Raymond (collateral cession to the bank) Beneficiary: His spouse It is explained to Raymond that the cession to the bank means the bank will get paid in the event of death, but if that cession should be lifted, having his wife as a beneficiary means that there will be no estate duty. Raymond is satisfied with this arrangement. When things start falling apart Three years later, Raymond is killed in a car accident. It becomes clear that, with- out an FNA, Raymond has grossly under- estimated the amount of cover he needed to protect his estate. Raymond, the financial director of The Professionals (Pty) Ltd, was also a shareholder in the company, he held 34% of the shares. The company had needed start-up capital and Raymond had stood surety, jointly and severally, together with the other two shareholders, for company debt. His widow does not work and they had two minor children. Raymond also 50 SENWES SCENARIO | WINTER 2018 had a minor child, Jack, from „ΑΙ•Ω₯½ΥΜ)Ι•±…Ρ₯½ΉΝ‘₯ΐ°™½Θέ‘½΄‘”έ…́±•…±±δ±₯„΄)‰±”™½Θ΅…₯ΉΡ•Ή…Ή”Έ)Q‘”HΔȁ΅₯±±₯½Έ±₯™”½Ω•Θέ…́Α…₯ΡΌ)Ρ‘”‰…Ή¬Έ)Q‘”™₯Ή…Ή”‘½ΥΝ”έ‘₯ ‘•±Ρ‘”½΄΄)Α…ΉηŠé‘•‰Π°‘•₯‘•Ρ‘…Ё…́I…ε΅½Ή)݅́„­•δ₯Ή‘₯Ω₯‘Υ…°°Ρ‘•δΉΌ±½Ή•Θ‘…)½Ή™₯‘•Ή”₯ΈΡ‘”Ω₯…‰₯±₯Ρ䁽˜Ρ‘”‰ΥΝ₯Ή•ΝΜ)…Ή₯Ρ́…‰₯±₯ΡδΡΌΝ•ΡΡ±”₯Ρ́‘•‰ΠΈQ‘•δ)…±±•ΥΐΡ‘”±½…ΈΈ%ΈΡ•Ι΅Μ½˜Ρ‘”ΝΥΙ”΄)ΡεΝ‘₯ΐ…Ι••΅•ΉΠΡ‘”™₯Ή…Ή”‘½ΥΝ”ΑΙΌ΄)••‘₯Ι•Ρ±δ……₯ΉΝЁI…ε΅½ΉΜ•ΝΡ…Ρ”Έ)I…ε΅½ΉΜ•α•ΥѽȁݽձΉ••ΡΌ)Ι•½Ω•ΘΡ‘”‘₯™™•Ι•Ή”™Ι½΄Ρ‘”ΝΥΙΩ₯Ω₯Ήœ)Ν‘…Ι•‘½±‘•Ί½Θ…±Ρ•ΙΉ…Ρ₯Ω•±δέ½Υ±‘…Ω”„)Ι₯‘Ё½˜Ι•½ΥΙΝ”……₯ΉΝЁё”½΅Α…Ήδ™½Θ)Ρ‘”‘•‰ΠΑ…₯½Έ₯Ρ́‰•‘…±˜°‘½Α•™Υ±±δΡ‘”)ΝΥΙΩ₯Ω₯ΉœΝ‘…Ι•‘½±‘•Ί½Θ½΅Α…Ήδέ½Υ±)‘…Ω”ΝΥ™™₯₯•ΉΠ…Ν ½…ΝΝ•Ρ́Ѽ΅••ΠΡ‘”)½‰±₯…Ρ₯½Έ„))…¬Μ΅½Ρ‘•ΘΝΥ‰΅₯ΡΡ•„΅…₯ΉΡ”΄)Ή…Ή”±…₯΄……₯ΉΝЁI…ε΅½ΉΜ•ΝΡ…Ρ”Έ)Q‘”Ν₯Ή±”‰₯•ΝЁ…Ν͕Ё₯ΈI…ε΅½ΉΜ)•ΝΡ…Ρ”έ…́‘₯́͑…Ι•‘½±‘₯Ήœ₯ΈQ‘”)AΙ½™•ΝΝ₯½Ή…±Μ€‘AΡ䀁1ѐ°έ‘₯ ½΅Α…Ήδ)Ι…Α₯‘±δ±½ΝЁم±Υ”…™Ρ•Θ‘₯́‘•…Ρ °™½±±½έ•)‰δΡ‘”™…΅₯±δ‘½΅”Έ=ΈΙ•…‘₯Ήœ‘₯́έ₯±°)‘₯́έ₯™”…±ΝΌ‘₯͍½Ω•Ίё…ЁI…ε΅½Ή)‰•ΕΥ•…Ρ‘•‘₯́…ΝΝ•Ρ́Ѽ„ΡΙΥΝΠΈ)]!P9LM!=U1Q!%98΄) %0A199H!Y%9Q%%°%8)%Q%=8Q<Q! =9 =YHό) ½ΉΡ₯Ή•ΉΠ±₯…‰₯±₯Ρδ聁½΅Α…Ήδ΅½έΉ•)Α½±₯δ™½Θ•… ½˜Ρ‘”ΝΥΙ•Ρ₯•Μ°₯ΉΙ•…Ν•)έ₯Ρ •ΝΡ…Ρ”‘ΥΡδΉέ‘₯ έ½Υ±‘…Ω”‰••Έ)ΥΝ•ΡΌΝ•ΡΡ±”Ρ‘”‘•‰ΠΡ‘”Ν‘…Ι•‘½±‘•ΙΜ)ΝΡ½½ΝΥΙ•Ρ䁙½ΘΈ) Υδ΅…Ή΅Ν•±°…ΙΙ…Ή•΅•ΉΠθI…ε΅½ΉΜ)™•±±½άΝ‘…Ι•‘½±‘•Ί͑½Υ±‘…Ω”‘…)„‰Υδ΅…Ή΅Ν•±°…Ι••΅•ΉΠ°™ΥΉ‘•‰δ)±₯™”₯ΉΝΥΙ…Ή”°₯ΈΑ±…”ΡΌΑΥɍ‘…Ν”)I…ε΅½ΉΜΝ‘…Ι•‘½±‘₯Ήœ™Ι½΄‘₯́•ΝΡ…Ρ”Έ)Q‘₯́ݽձ‘…Ω”΅…‘”Ρ‘”…Ν …Ω…₯±…‰±”)ΡΌ‘₯́•ΝΡ…Ρ”™½Θ‘•‰Π°•αΑ•ΉΝ•Μ°Ρ…α•Μ°)Ι•‘₯Ρ½Ί…Ή‘₯́‘•Α•Ή‘…ΉΡΜΈ)-•δΑ•ΙΝ½Έ½Ω•ΘθI…ε΅½Ήέ…́„­•δ)Α•ΙΝ½Έ₯ΈΡ‘”½΅Α…ΉδΈQ‘”‰ΥΝ₯Ή•ΝΜ)έ½Υ±‘…Ω”‰•Ή•™₯Ρ•™Ι½΄‘…Ω₯ΉœΡ‘₯Μ)½Ω•ΘΡΌΡ₯‘”Ρ‘•΄½Ω•ΘΡ‘”΅½ΉΡ‘́₯΅΅”΄)‘₯…Ρ•±δ…™Ρ•Θ‘₯́‘•…Ρ Έ)ΝΡ…Ρ”±₯ΕΥ₯‘₯ΡδθᕍΥѽȝ́™••Μ½˜€ΜΈΤ”(‘፱Ց₯ΉœYP€½˜Ρ‘”Ι½Ν́م±Υ”½˜‘₯Μ)ΑΙ½Α•ΙΡ䁅́…Ё‘…Ρ”½˜‘•…Ρ Έ) …Α₯Ρ…°…₯ΉΜΡ…ΰ聙™•Ρ₯Ω”Ι…Ρ”½˜€Δΰ”)5…₯ΉΡ•Ή…Ή”±…₯΄‰δ΅₯Ή½Θ‘₯±Έ)ΙΥ…°±…₯΄)ΝΡ…Ρ”‘ΥΡ䁽ٕȁH̸ԁ΅₯±±₯½ΈΈ)Q‘”™₯Ή…Ή₯…°Α±…ΉΉ•ΘΝ‘½Υ±Ρ‘•Έ‘…Ω”)‘½Ή”„Α•ΙΝ½Ή…°™₯Ή…Ή₯…°Ή••‘́…Ή…±εΝ₯́Ѽ)΅…­”ΝΥΙ”Ρ‘…Ёё•Ι”έ…́•Ή½Υ …Ν ΡΌ)΅••ΠΡ‘”•ΝΡ…Ρ”±₯ΕΥ₯‘₯Ρ䁹••‘Μ°…Ή…±ΝΌ)•Ή½Υ ±•™Π½Ω•ΘΡΌ‰”₯ΉΩ•ΝΡ•ΡΌΑΙ½‘Ս”)…Έ₯Ή½΅”™½Θ‘₯́ΝΑ½ΥΝ”…Ή‘₯±‘Ι•ΈΈ)₯Ω”‘₯́‘•Ν₯Ι”™½Θ‘₯́•ΝΡ…Ρ”ΡΌ‘•Ω½±Ω”)ΥΑ½Έ„ΡΙΥΝΠ°Ρ‘”™₯Ή…Ή₯…°Α±…ΉΉ•ΘΝ‘½Υ±)‘…Ω”Ρ…­•Έ₯ΉΡΌ…½ΥΉΠΡ‘”ΡΙΥΝΠ°Ρ‘”Ή••)ΡΌΑΙ½Ω₯‘”ΝΑ•₯™₯Œ΅…₯ΉΡ•Ή…Ή”™½Θ)…¬°)…ΉΡ‘”Ή••™½Θ±₯ΕΥ₯‘₯Ρδ₯Έ‘₯́•ΝΡ…Ρ”Έ)9½άΡ‘…ЁI…ε΅½Ή₯́‘•…°‘½ά‘½•Μ)„Α•ΙΝ½Έ•αΑ±…₯ΈΡΌI…ε΅½ΉΜ‘•Α•Έ΄)‘…ΉΡ́ݑδΡ‘”Ι•±•Ω…ΉΠΕΥ•ΝΡ₯½ΉΜέ•Ι”)Ή•Ω•Θ…Ν­•