GLACIER FIDUCIARY SERVICES

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1 GLACIER FIDUCIARY SERVICES Introduction Estate planning, and Wills and Trust services play an increasingly important role in the financial planning process for affluent clients. Glacier Fiduciary Services offers affluent clients a range of services aimed at ensuring that the client receives a holistic view of his/her estate. All elements are reviewed to ensure synergy in the client s current estate and his/her wishes, with the ultimate goal being the preservation of wealth for current and future generations. Glacier Fiduciary Services, a division of Glacier by Sanlam, provides comprehensive and objective estate planning and fiduciary services to affluent and high net worth clients. The aim is to provide clients with an objective, value for money, and personalised service to address their individual requirements. Glacier Trust (Pty) Ltd administers inter vivos and testamentary trusts, and acts as a professional trustee, as well as an appointed executor in deceased estates. Glacier Trust (Pty) Ltd outsources the administration of deceased estates to Sanlam Trust. Benefits of using Glacier Fiduciary Services Clients can reap the following benefits by using Glacier Fiduciary Services: Expertise in all aspects of estate planning Comprehensive feedback regarding the financial and legal aspects of estate planning Professional and independent advice regarding estate planning needs Personalised and specific estate planning advice addressing individual concerns and objectives Professional trustee services Trustee training Audit of trust deeds to ensure that the trust deed is compliant with the law, reflects the wishes of the founder and that the deed reflects the purpose of the trust. Entry level criteria The misconception is that having an estate plan drawn up, drafting a will or having a trust is only for wealthy or affluent clients. This is not true; client s needs differ and the utilisation of a trust as a vehicle, or how a client s assets are disposed of in his/her will, will depend on the client s individual circumstances. Due to Glacier Fiduciary s positioning in the market, its target market is affluent to high net worth clients with respect to services provided, and therefore entry level criteria are as follows: Service Qualifying Criteria Inter vivos Trust Drafting of Wills Handling of deceased estates Determined on a case-by-case basis Assets exceeding R7.5 million Assets exceeding R7.5 million Estate planning Value of estate exceeding R A LICENSED FINANCIAL SERVICES PROVIDER FOR INTERMEDIARY USE ONLY

2 Fiduciary offering Glacier Fiduciary Services will offer the following services to their clients: Will consulting and drafting services Estate planning services Trust deed drafting, Trust administration, professional trustee services Administration of deceased estates Will service This service is available to clients with a gross estate value of R7.5 million or more. All requests for new Glacier wills, revisions to existing wills, maintenance and enquiries, will be received via , fax or telephonically. The intermediary will send a completed form for a client requesting a will. Note: Glacier finds it valuable to consult with the client prior to drafting his/her will in order to understand the client s family structure, his/her needs, as well as those of his/her family so that his/her wishes tie in with the law to provide a will that is tailor-made for his/her circumstances. Glacier Fiduciary Services will cover the following processes: Will drafting Will revision Request for copy of a will Cancelled will Enquiry process Will maintenance When drafting a will with Glacier Fiduciary Services, clients can receive competitive rebates on their executor s fees, as well as first-class service from some of the most experienced administrators in the industry. Administration of deceased estate service There may be two scenarios when dealing with a deceased estate. One will be where the deceased client had a will with Glacier, and the other where there is no will with Glacier but the nominated executor requests Glacier to administer the estate. The Master of the High Court will not allow a person to act as executor if they are not registered as a practising attorney, trust company or auditor, and will therefore require them to appoint an agent who holds such office. When a family member or appointed person receives a death certificate or is notified of the death of a client, it is important to determine if the client has a will with Glacier. Note: Please see Addendum A for a complete list of documents required by an executor in order to administer a deceased estate. Estate planning service This service is available to clients with an estate value exceeding R10 million and includes detailed legal analysis and advice regarding each estate instrument (will, trust, business interests, etc.), calculations showing actual amounts for distribution in terms of a will, administration costs, estate duty and capital gains tax calculations, a liquidity analysis, a re-draft of the client s will in accordance with his/her wishes and Glacier s recommendations, and a full legal compliance and risk review of any trust the client has established. At the first consultation, clients provide their fiduciary specialist with the completed application form, relevant documents and an explanation of their concerns and objectives. Thereafter a report is 2

3 compiled and the fiduciary specialist s recommendations are presented to the client at a second consultation. The category of the plan will depend on the profile and complexity of the client s estate and affairs. The purpose of estate planning is to ensure that the wishes and needs for the creation, protection and transfer of a client s wealth over generations are met. Glacier s offering therefore includes: estate planning and wills implementation and maintenance of estate plans offshore trusts and trust services business assurance solutions estate and trust-related tax solutions Note: Please see addendum B for a complete list of documents required for an estate planning consultation. Trust services Glacier Trust (Pty) Ltd is a registered trust company. Glacier Trust (Pty) Ltd is able to act as an administrator and professional trustee, as well as an executor if nominated in a client s will. The administration of deceased estates is outsourced to Sanlam Trust, who has a great reputation and is seen as the leader in the industry in the administration of estates. There are two types of trusts: 1. Testamentary trusts created via nomination in a will 2. Inter vivos trusts created while the client is alive. Glacier can act as trustee on both types of trusts with different responsibilities, based on the client and beneficiary needs. Fees and costs Glacier Fiduciary Services will charge fees for offering clients the services described above. The different costs per service are discussed below. Will service fees This service is available to existing Glacier clients and new clients with a gross estate value of R7.5 million or more, and includes a detailed consultation (up to 1½ hours) and re-drafting of the will to address succession wishes and requirements. Service Drafting/review of single or joint will Safekeeping of will Fee No charge Offshore will (mainly UK jurisdiction) R

4 Estate planning advice fees The following fees are applicable when Glacier Fiduciary assists clients with estate planning: Standard Plan including two consultations R8 500 Complex Plan including two consultations R Drafting or amendments to Will(s) where Glacier appointed as executor Included in the above fee Drafting or amendments to Will(s) where third party is appointed as executor R 975 Additional consultations, amendments and implementation of recommendations Yearly review of estate plan (recommended) As per fee scales listed Administration of deceased estates fees Deceased estate and testamentary trust administration These services are provided by Glacier Trust (Pty) Ltd, a subsidiary of Sanlam Trust (Pty) Ltd. Substantial and very competitive discounts on executors and testamentary trustees fees, as well as conveyancing fees are available to qualifying Glacier clients. Where property is transferred by Glacier Trust Limited in the administration of a deceased estate, the fees below are charged by Glacier s panel of conveyancers. These fees exclude VAT, disbursements, and any tax payable in relation to the transfer and bond costs. Property Value Tariff Fee (excluding VAT) Fees for Glacier R0 to R R3 200 R7 500 Tariff less 5% R to R R8 500 R Tariff less 10% R to R R R Tariff less 15% R2 500 to R R R Tariff less 20% R plus R plus Tariff less 20% Property transfers for estate planning and inter vivos trusts Glacier s panel of conveyancers offers the exceptionally competitive fixed fees below where property is transferred for the purposes of an estate plan or by an inter vivos trust where Glacier Trust (Pty) Ltd is the professional trustee. These fees exclude VAT, disbursements and any tax payable in relation to the transfer, and bond costs. Property Value Fixed Fees R0 to R R8 550 R to R R R plus R

5 Trust service fees Inter vivos trusts Establishing a trust involves a detailed consideration of the advantages and disadvantages in relation to a family s particular circumstances and needs. The tax implications of transferring appropriate assets must be taken into account. Consultation with Fiduciary Specialist Trust deed drafting - application form only R4 950 Trust deed drafting: existing Glacier client application form only R3 500 Drafting of a charitable, BEE or special trust deed R6 950 Drafting of resolutions Trust audit: Legal and compliance or risk and governance audit R2 500 Combined trust audit: legal, compliance, risk and governance audit R3 500 Substitute Trust Deed / Deed of Amendment: Taking instructions, drafting and all Master s Office attendances Trusteeship changes (Letter of Authority): Drafting relevant documentation and Master s Office attendances R3 500 R1 200 Ad hoc Master s Office submission R 350 * Trust and Trustee training recommended with establishment of new trusts Professional Trustee and Administration Services by Glacier Trust Limited Fees quoted on each individual case, subject to risk profiling, due diligence, and approval by the Glacier new business committee. Trusts and trustee training One and a half hour trustee training sessions are held for trustees on inter vivos trusts or intermediaries. Topics include, inter alia, role players, trustee qualification/disqualification, transferring assets into a trust, advantages and disadvantages, minutes and meetings, revocation/variation of a trust deed, decision-making of trustees, disclosure to beneficiaries, trustees duties and obligations, annual financial statements, risks of poor trust governance, and contractual powers and obligations,. Includes precedent meeting agendas and minutes. R3 000 Offshore Trust Services Fees Referred to Glacier s preferred panel of service providers who operate in, inter alia, the Channel Islands and Switzerland. Fees vary between providers. 5

6 Other fiduciary-offering fees Buy and sell agreements Drafting new agreement (funded by Glacier/Sanlam policy) No charge Drafting new agreement (not funded by Glacier/Sanlam policy) R1 800 Audit of existing buy and sell agreement R1 800 Complex buy and sell agreement Supplementary charges Consultations with a Fiduciary Specialist, i.e. drafting of documents not included in any of the above fixed-fee categories, such as written opinions on estate planning and tax issues. Travel fees: Fiduciary Specialists consult from Glacier s offices in Cape Town, Johannesburg, Pretoria and Durban. Fees are applicable for consultations more than 80km from Glacier s offices. R3.50 per kilometre over 80 km 6

7 Addendum A Documents and information required by an executor 1. Original will 2. Original Death Certificate and BI-1663 Notification of Death Form 3. Identity Document of deceased 4. Name, address of employer and employee number of deceased 5. Details of pension fund 6. Name, address and reference number of medical aid 7. Income tax details (including details of accountants) 8. Name, address and telephone number of doctor who usually treated the deceased 9. Name, telephone and case numbers from the Police Station should the deceased have died of unnatural causes (for example, in a motor vehicle accident or suicide) 10. Partnership agreement and name, address of partners 11. Particulars of close corporation or business 12. Name and number of auditor/accounting officer 13. Details of divorced and predeceased spouses 14. Antenuptial contracts, divorce agreements (orders) and maintenance agreements 15. Title deed in respect of fixed property 16. Rates and taxes account and/or details of body corporate or the managing agents 17. Original registration certificates in respect of motor vehicles 18. Firearms - to be handed to the Executor for safekeeping 19. Certificates/details in respect of timeshare 20. Share certificates (stock exchange or private companies) 21 Hire and letting contracts 22. Chequebooks, investment statements, credit cards, ATM cards 23. Insurance policies - whether payable to the estate or to a third party 24. Details of short-term insurance (motor vehicle, contents of house, etc.) 25. Accounts owing by the deceased 26. Copies of identity documents of beneficiaries and marriage details 27. Copies of birth certificates of minor beneficiaries 7

8 Addendum B Checklist of documentation required for an estate planning consultation 1. Copies of ID of client and spouse 2. Utility bill not older than three months 3. Income tax number 4. Date of marriage 5. Antenuptial contract 6. Children s birth dates 7. Last Will and Testament If applicable, the following: 1. Trust Deed(s) and latest Letter(s) of Authority 2. Buy and sell agreements(s) 3. Partnership agreement(s) 4. Latest employee benefit statement 5. Latest policy schedule 6. Latest investment schedule 7. List of assets at market value and liabilities in personal capacity of both client and spouse 8. Base cost valuation of assets for capital gains tax purposes 9. Value of permanent improvements made to fixed property 10. Financial statement of trust assets 11. List of livestock at market value (if farming client) 12. Details of offshore assets/jurisdiction and copy of offshore Will 13. Copy of divorce order 8