Yes, we are a registered Financial Services Provider (FSP) with number 54530.

SARS will value your business at the market value. But what you actually get paid for it may be a lot less as this will depend on how much someone is actually willing to pay for the shares. Usually, assets purchased out of deceased estates are purchased at a discount or a fire-sale price.

Yes, capital gains tax is applicable when the business is sold, or upon the death of a shareholder, when it is then deemed to be a sale at the market value of the business.

With a Buy-and-Sell Agreement, the shares of each of the partners are sold and bought at a determined value (which can be updated annually) if a tragic event occurs. E.g. if partner B dies, then the partner A buys his shares at a pre-determined and agreed price, and thus a fair value.

A business assurance policy is combined with a buy-and-sell agreement. The business assurance policy pays out to the estate of deceased, and thus the estate, can genuinely receive the fair value, and the shares can transfer easily.

Putting a buy-and-sell agreement in place helps secure the value of your business if you pass. Without one, the value of your business is uncertain and so is the legacy you leave your family.

Typically a policy will pay out in a matter of days. Compared to months and years it can take for a deceased estate to wind up the shares of a private company, and at an uncertain value. This can leave heirs and legatees stranded for a very long time. The business assurance helps solve this problem.