By Andrew Green, Staff Reporter
IN DAYS past, smart Jamaicans stored coffin lumber in preparation for their ultimate departure. Now, despite higher literacy and income levels, few Jamaicans ensure that even the funds to pay for their funeral has been put aside.
"Jamaicans are apprehensive about planning for death," said Winston Roman Jr., managing director of Roman's Funeral Home Limited. They worry that it means they will die sooner.
In his experience as a funeral director, Mr. Roman said the problem most often faced by the bereaved is that of inadequate financing to deal with death.
A cremation at Roman's Funeral Home costs $55,000-$130,000, he said. Burials cost $120,000 and over.
And there are added costs which can be incurred, Mr. Roman said. The family of the bereaved generally provides food and drink for visitors and may incur major travel expenses.
"Death has costs," said Ruel Woolcock, a lawyer with the Ministry of Housing. "Make sure that funds are in place, and your executor has access to it or you might not get burial you want."
An executor is the person you name in your will to carry out your wishes. The executor will determine your assets, pay debts, and distribute the assets according to your wishes.
But of course, that assumes you have made a will. Mr. Woolcock said most Jamaicans don't.
Many people think a will is a complicated document and that is not necessarily the case, Mr. Woolcock said. Those making a will must sign the document in the presence of two persons, witnesses, over 18 years old who are not named as beneficiaries. The document should be dated.
Your executor is there to ensure that your debts need to be settled from assets you leave. But if your debts exceed your assets, there might not be enough money to cover your funeral costs, Mr. Woolcock said.
An important consideration is that there are often heavy medical expenses to meet before death, Mr. Roman said. These medical costs can deplete the funds that would otherwise have been used to meet funeral expenses.
"That is why insurance is important," Mr. Roman said. Insurance is available to cover the cost of illness as well as death.
Having a will help ensure that you can determine how your assets are shared up. It also makes life easier for those who survive you.
Without one, it will take years before your assets can be distributed, on a basis determined by the Government.
TERMINAL ILLNESS
Planning ahead for old age, illness and death is based on being considerate for those who will survive you, said Connel Steer, partner with Chartered Valuation Surveyors, Allison Pitter & Company. "If you are certain you have a terminal illness and have assets to dispose of, you might transfer assets while alive," Mr. Woolcock said. "You won't escape taxes, but it is much faster than waiting for a will to be probated through the courts."
It is important to consider the tax implications of the shares you own, said Leo Williams, managing director of JMMB Securities. If you are passing shares on to someone not on your share account, the transaction will be subject to a transfer tax unless the stocks are traded on the Jamaica Stock Exchange.
It does not matter whether that person is a wife or child, Mr. Williams said. "Most people seem surprised about this."
As investors get older, it is recommended that they reduce the emphasis on stock market investment and shift more resources into cash and mutual funds, the stockbroker said. This reduces risk levels which is critical when an individual might have limited time to overcome an investment reversal.
"Maybe 30 per cent of investors make adequate preparation for their old age," Mr. Williams said. "Horror stories can come when they don't do it."
Another consideration is the type of real estate investment held by older people, said Mr. Steer.
"Decide if you really want to keep the big house," Mr. Steer said. This comes with the expenses of maintaining the yard, feeding the dogs, painting the building and hiring a helper.
It might make sense to sell the house and buy a smaller house or apartment in a secure area, the real estate valuer said. This will reduce expenses and be easier to manage.
"You need to put your house in order," Mr. Roman said. "More people need to make preparation for old age and death."
All right, say you are in the market to buy. In everything there is a right way and a wrong way. The wrong way will see you frustrated and wasting a lot a time and worse, missing out on the property that you really want.
Real estate agents say that serious buyers should follow these tips.
* Get pre-qualified from their financial institution to avoid disappointment.
* Don't take long to make decisions as properties are moving fast.
* Buyers need to look at potential. Forget about the obvious things such as lack of maintenance or an ugly kitchen. You are not going to find the perfect place, you will have to make the place your own.
* Buyers need to be ready to buy and not waste time.
* Be prepared financially to come up with the deposit immediately.
LOOKING BEYOND KINGSTON
And if Kingston and its environs is not your cup of tea, parts of St. Catherine, Ocho Rios, Mandeville and Montego Bay are considered hot spots.
Ms. Harrison points out that "Portmore and the Spanish Town area continue to sell well. Ocho Rios and Mandeville also continue to sell steadily. At the higher price point of $10 to $12 million in Montego Bay also sells well. As long as something is priced reasonable it will go."
But if starting from scratch is what turns you on, consider land.
States Mr. Thompson, "In terms of land, the flat lots are not available and if they are, they are priced in the $5 million upward range and targeted for developers. So individuals can get lots that are more sloped in the hills.
"Lots in and around Kingston area are selling well. You can get a lot in Chancery Hall lot for $1.8 million. Overall, prices range from $1.8 million to $3 million depending on the size and slope of the land."
BARGAIN HUNTERS BEWARE
And just in case you hoped to get a bargain from foreclosed properties (or ones that sold under the powers of a mortgage), think again.
States Ms. Harrison, "Even houses sold under the powers of a mortgage (foreclosure) are being sold at close to market price, so they aren't really deals."
