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Hello
2012
All
of us at FPM wish all our clients, suppliers and
partners a happy and healthy 2012.
I
remember writing this version of the newsletter for the
beginning of 2011 as if it were only a few months ago!!
How time is flying. With so much on the horizon I
will keep this welcome short and highlight those areas
that will concern us in our efforts to preserve and
create fresh wealth for our clients.
The
issues that will affect all of us in SA in 2012 are:
-
The
ANC conference in Mangaung in Bloemfontein in
December. ANC infighting has consistently kept
government’s eye off the service delivery ball and
this year should sadly be no different.
-
The
political uncertainty will continue to play a role
in the international rating agencies’ view of SA,
which has already led to a downgrade of SA’s
outlook.
-
With
inflation creeping up and possibly staying above the
upper band for much of 2012 i.e. 6% pa, the chances
of incremental interest rate increases look stronger
and stronger. If this is the case, the stuttering
activity in the economy may be snuffed out before it
really gets traction.
-
Because
we are part of the global village more than ever now
the events playing out in Europe will continue to
have an effect on our economy, even if we are in
much better shape than the developed economies.
-
Europe’s
sovereign debt woes will worsen if the bureaucrats
dither instead of doing what ultimately has to be
done – agree on a sustainable solution that will
make it possible for the debt crisis to be resolved,
which under any circumstances will take a generation
to correct.
-
Europe,
being our biggest trading partner, will create
massive uncertainty in our market with huge
volatility for the Rand.
-
When
searching for medium- to long-term yield we are of
the opinion that the SA market might be a bit
pedestrian and that investment returns over a five
year and longer period will probably be found in
markets offshore, both developed and emerging.
-
Certainly
in USA, there are many equities of blue chip
companies that are trading at half the price they
were in 2000 and at P/E’s that are a fraction of
what they were at the turn of the century. We
believe opportunities exist for diversification
geographically, from a currency and asset class
point of view while the SA is almost fully priced.
In
closing we have finalised a very exciting project in
partnership with Analytics Consulting, which has been
several years in the making. We believe this will add
massive value to our investment clients in our
ever-continuing search for excellence and solid returns
at acceptable risk levels. Every client for whom we
invest money will be given a presentation about this and
will hopefully take advantage of the enhanced investment
capability we are offering.
We
look forward to seeing all of you this year and
achieving your goals. Best wishes.
By
Wayne Visser
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The
dangers of dying without a will
If
you die without leaving a Will or a valid Will, your
estate will be handled according to the rules of the
Intestate Succession Act 81 of 1987.
These
rules can be summarised as follows:
-
If
the deceased is survived by a spouse but not by
descendant, then the spouse is the sole
intestate heir, in equal shares if there is more
than one spouse.
-
If
the deceased is survived by descendant, but not
by a spouse, then the descendant will inherit
the intestate estate in equal shares.
-
If
the deceased is survived by a spouse as well as
descendant, then the spouse will inherit the
greater of R125,000 or a child’s share, and the
children the balance of the estate. A child’s
share is determined by dividing the intestate estate
through the number of surviving children of the
deceased and the deceased children who have left
issue, plus the number of surviving spouses.
-
If
the deceased leaves no spouse or descendants, but
both parents who are alive, then his/her parents
will inherit the intestate estate in equal shares.
-
f
the deceased leaves no spouse and no descendants
but leaves one parent, while the deceased parent
left descendants i.e. siblings of the deceased,
then the surviving parent will inherit one half of
the intestate estate and the descendants of the
deceased parent will inherit the other half in equal
shares.
-
If
the deceased leaves no spouse or descendants but
leaves one surviving parent, while the deceased
parent did not leave any other descendants, then
the sole surviving parent will inherit the whole
estate.
-
If
the deceased does not leave a spouse or
descendants or parents, but both his parents left
descendents, then the intestate estate will be
split into equal parts. One half of the estate is
then divided among the descendants related to the
deceased through the predeceased mother and the
other half among the descendants related to the
deceased through the predeceased father.
-
If
the deceased does not leave a spouse, descendants
or parents, but only one of the predeceased parents
left descendants, then the descendants of the
predeceased parent who left descendants will inherit
the entire intestate estate in equal shares.
-
If
the deceased does not leave a spouse or
descendants or parents or descendants of his parents,
then the nearest blood relation/s inherits the
entire intestate estate in equal shares.
-
If
the deceased is not survived by any relative,
then only in this instance will the proceeds of the
estate devolve upon the state.
-
If
the deceased is survived by an illegitimate child,
then this child can inherit from either/both blood
relations, the same as a legitimate child.
-
If
the deceased is survived by an adopted child,
then this child will be deemed:
-
to
be a descendent of his adoptive parent or parents
and inherit accordingly;
-
not
to be a descendent of their natural parents, except
in the case of a natural parent who is also the
adoptive parent of that child or was, at the time of
the adoption, married to the adoptive parent of the
child.
From
the above rules, it is clear that a Will or valid Will
is very important if one is to choose, before death, how
and to whom one’s estate should devolve and therefore,
ensure that the dependents and family are protected on
one’s death.
By
Candice Hudson
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