African Rainbow Capital Invests in Capital Legacy Will Drafting Company
African Rainbow Capital (ARC) announced Tuesday, August 6, its acquisition of a 25% stake in specialist financial services firm Capital Legacy for an undisclosed amount.
Capital Legacy is a player in will drafting and estate administration. In business since 2012, the company has identified improved, efficient and cost-effective solutions for will drafting, estate planning and enforcement.
These solutions are important in a South African context where only 1 in 4 people have a valid will in place at the time of death, the CRA said.
“Inefficiencies in estate planning could cause 30% of the estate’s value to be used to cover costs. In addition, execution could take years, not months, to complete without proper planning. This poses several financial risks for the dependents of the deceased. “
These include financial issues, such as lack of cash to settle debts, inheritance taxes, and other statutory costs relating to estate administration.
For example, if a person dies intestate (without a valid will) with minor dependents, these inheritances can either be reduced in cash and transferred to the Government Guardians Fund, or transferred to designated guardians of minors – as opposed to the deceased initially expected.
In addition, the estate is distributed in accordance with the laws of the intestate and specific regulations thereof, the CRA said.
Capital Legacy Founder and CEO Alex Simeonides said, “Since its inception in 2012, Capital Legacy has drafted over 200,000 wills. The number of South Africans who do not have a will still exceeds those who do. So far, we have shown that our company is uniquely positioned to provide ordinary people with a service that they can benefit from in a meaningful way.
“By working with over 4,000 contract brokers, Capital Legacy can reach many more people to educate them about the need to have a valid will and plan properly. Currently, we support more than 5,000 individuals per month in the drafting of their wills.
“Our experienced estate administrators also facilitate the successful transfer of assets from the estate to those who are to inherit, thereby helping the families of those who have died.”
ARC Co-CEO Johan van der Merwe said: “We believe Capital Legacy fits perfectly into the ecosystem of financial services companies that we assemble. These companies would leverage each other and create synergies for other companies as part of our holistic approach. “
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