MyMoney Online

Moms, be careful not to give the kids too much after Mother’s Day!

Mother’s day is all about being spoilt by the children and some mom’s will be so overwhelmed by the love and attention. Just incase you want to reciprocate, Mom’s… beware there are limitations.

Be careful Mom’s not to give away your children’s inheritance too soon, the tax man will charge you a fortune.You can only give up to R100 000 per year after which your will have to pay 20% in donations tax.

You can give and receive any amount to your husband but when it comes to the children SARS puts the brakes on.

So if you suddenly bought your child a million rand house and a fancy German car then SARS could be after you in terms of how necessary and reasonable the donation was towards the upkeep of your child.

When you really study the taxation formula of donations tax you realise that it is a form of tax to stop you from offloading your assets before you die, thereby avoiding estate duty. You see, when you die your estate is taxed after exemptions, costs and liabilities at a rate of 20%. The easiest thing you could do if this was not in place would be to give the children everything just before you die.

This way SARS won’t get much. So, donations tax is a mechanism put in place to ensure that SARS gets its slice of the revenue whilst you are alive. When you die SARS will collect the rest. So, mom’s, enjoy the day and just be aware of that impulsive urge to give your children too much. It could cost you more than you realise!!!

Listen to Paul Roelofse's chat below...

Read more from Paul Roelofse at www.investforlife.co.za


This article first appeared on 702 : Moms, be careful not to give the kids too much after Mother’s Day!


Recommended

by THE NEWSROOM
Read More
How to plan financially, considering you’re poorer after Gigaba's hectic Budget

How to plan financially, considering you’re poorer after Gigaba's hectic Budget

The Money Show’s Bruce Whitfield interviews Galileo Capital Financial Advisor Warren Ingram.

Pick these 3 stocks right now, make a killing (by Sasfin Securities)

Pick these 3 stocks right now, make a killing (by Sasfin Securities)

These are the three best shares to buy right now, says stockbroker and portfolio manager Nesan Nair.

3 best JSE shares to buy, right now (by Ashburton Fund Managers)

3 best JSE shares to buy, right now (by Ashburton Fund Managers)

Hot investment tip, anyone? Fund manager Jason Forssman shares his stock picks of the week…

How to best invest a financial windfall (e.g. an inheritance)

How to best invest a financial windfall (e.g. an inheritance)

Personal Financial Advisor Warren Ingram advises a listener who inherited some money, and wants to work well with it.

3 shares you’ll do well to buy this week (by Mia Kruger)

3 shares you’ll do well to buy this week (by Mia Kruger)

Bruce Whitfield asks Mia Kruger of Kruger International Asset and Wealth Management for her stock picks of the week.

Robots are already replacing financial advisors right here in South Africa

Robots are already replacing financial advisors right here in South Africa

But can they be trusted? Are they independent? Bruce Whitfield interviews Personal Financial Advisor Warren Ingram.

Popular articles
UK issues terror warning against SA after Brit couple abducted in KZN

UK issues terror warning against SA after Brit couple abducted in KZN

The British gov issued a travel advisory‚ warning of possible attacks when traveling to SA, after a UK couple was kidnapped.

Their way or the highway? 7 annoying habits many drivers are guilty of

Their way or the highway? 7 annoying habits many drivers are guilty of

Passengers often endure all sorts of irritations from drivers. Callers share their biggest gripes about folks behind the wheel.

[LISTEN] Gigaba deliberately misled the public - Zwelinzima Vavi

[LISTEN] Gigaba deliberately misled the public - Zwelinzima Vavi

Trade unions react to Malusi Gigaba's announcement of a one percentage point VAT increase for #Budget2018

Saps: Attackers spared 5 female cops in Ngcobo police shooting

Saps: Attackers spared 5 female cops in Ngcobo police shooting

E Cape Saps says they are investigating the murder of five police officers and one retired soldier at Ngcobo Police Station.

Missing Cape Town couple's vehicle found north of Durban

Missing Cape Town couple's vehicle found north of Durban

Hawks spokesperson says the couple has not yet been located and their names will not be released as yet.

How to make your first million

How to make your first million

Warren Ingram discusses his new book in which he shares practical ways for ordinary people to achieve financial freedom.