One of the things you cannot control is how or when you will pass away. This is why you must plan for the financial well-being of your loved ones, while you still can. A last will and testament is the final document you will create, outlining and detailing who inherits your estate. In other words, assets like your property, money and similar possessions. Drafting a will is a way to make sure that what you’ve worked so hard for will be left to those who mean the most to you.
Why do you need a will?
A will gives you the control and assurance that the people you love the most will be taken care of when you are no longer there. Without an updated will, your family could be left with financial and legal challenges and disputes that could last for years. Dying intestate (without a valid will) means you have no say over who winds up your estate or what they charge. The most obvious, most unsettling, aspect of dying without a valid will is that you forfeit the freedom of deciding what should happen to your estate, which will then be allocated in terms of pre-determined legislated guidelines. This is also a risk when people fail to update their beneficiaries following important life events, like a death or birth in the family or a divorce.
You can save your family this undue stress by being strategic about your estate planning, and seeking the assistance of a professional estate practitioner or financial adviser – just like Andiswa did:
Make sure your estate is liquid
Picture an estate as a living, breathing thing – always growing or diminishing, needing maintenance and constant attention. If you bear in mind that at least 30% of all estates can only be settled once some of the assets have been sold to generate funds, there is, unfortunately, a chance that the assets you plan to leave your family will have to be sold to cover any debts. The best way to plan is to work out whether there will be a shortfall or surplus in your estate. The money you require is equal to your needs (all your debt) plus five times your annual income (to care for your family). If your needs exceed your provision, you will have a shortfall in your estate. If your provision exceeds your needs, you will have a surplus in your estate.
Nominating an executor
The nomination of an executor is a big responsibility. You may nominate your spouse, but this is in most cases, is not a good idea, since your spouse could be emotionally shattered and not ready to make important financial decisions. Should your spouse not know what to do under these circumstances, they won’t know where to get the best advice or service. Your spouse may be exposed to someone serving their own interests, in which case the estate’s chequebook might end up in the wrong hands. Generally, the Master of the High Court, who appoints the executor or executrix, will insist on a legal professional or trust company being appointed. You can approach a reputable company like your bank or an attorney who specialises in wills, estates and trusts.
Benefits of having a will
1. Wills limit family disputes
A clear, well-written Will can ensure that family arguments over your estate are avoided.
In rare cases, the courts may allow a Will to be contested, but there must be a reason to believe that the Will is not valid; for example, if the person who wrote the Will was not of sound mind or unduly influenced by a third party.
2. Wills state preferences
A Will can outline how you would like certain assets to be used as well as indicate who will receive what from your estate. For instance, you could leave your antique car to your son, stating clearly in your Will that you’d like him to sell the car to pay for his education, however, such indications of preference are not legally binding in any way; yet do serve to make your loved ones aware of your final wishes.”
3. Children’s guardians are named in Wills
Unless you name in your Will who you want to take care of your children in the event of your passing, the State will determine who will have guardianship. The State can choose somebody you would have chosen yourself, or they may choose a third party that you may not have approved of.
4. You can provide for heirs with special needs
You may pass away when your beneficiaries are too young or immature to manage their inheritance. In such cases, a Will can insist on the assets being placed in a trust that can either limit the beneficiaries’ access until they are of a certain age or distribute the money over a while. Such provisions can also be tailored to care for elderly relatives or those with special needs.
If you need help drafting a will contact the following institutions:
Standard Bank: https://www.standardbank.co.za/southafrica/personal/products-and-services/insure-what-matters/your-future/wills
FNB: https://www.fnb.co.za/insurance/deceased-estates/wills.html
Sanlam: https://www.sanlam.co.za/campaigns/umbrellafundwills/Pages/default.aspx
Momentum: https://www.momentum.co.za/momentum/personal/products/momentum-trust
ABSA: https://www.absa.co.za/personal/insure/my-life/absa-wills/
