The importance of a last will
Drafting a will is something that everybody needs to prioritise, rather sooner than later, as you never know what tomorrow may bring
What will happen to your family or assets once you are no longer here?
Drafting a will is something that everybody needs to prioritise, rather sooner than later, as you never know what tomorrow may bring.
A will brings clarity and certainty. It allows you to determine who will benefit from your estate, giving you the opportunity to dispose of your assets according to your wishes.
Here are a few guidelines to compiling your last will and testament to make it a little less overwhelming:
Who needs a will?
It is a common misconception that you only need a will if you have a large number of valuable assets.
Any person older than 16 years who has assets, even if it is just a car or a bank account, can compile a will.
‘It is advisable to have a will if you own a business or overseas assets; if you are married, divorced or have a life partner or if you have dependents such as minor children,’ says Katherine Timoney, Candidate Attorney at Gillan & Veldhuizen.
What if there is no will?
Christel Botha, Fiduciary Services Manager at Alexander Forbes, says that with no will in place, there is a law that determines who will inherit from your estate. This may cause inheritance to devolve to someone whom you may not have wanted to inherit from your estate.
The hierarchy of intestate succession Act is as follows:
· Primarily the spouse and children of the deceased.
· If a parent of minor children dies without a will and the other parent is unable to provide care,
the state will have the power to determine who will become the guardian of the children, and the property they will inherit.
· If there is no spouse or children, the surviving parent(s) will benefit.
· If the parents are predeceased, the closest blood relatives will benefit.
· If no surviving blood relatives are found, the estate will be converted to cash and will be paid into the Guardians Fund.
· If the money is not claimed by a person entitled thereto within 30 years, then the money is forfeited to the state.
Where do I start?
Let a professional assist you with drafting a will.
Keep the following in mind:
· Who do you trust to manage your will?
· What do you have to leave behind?
· Who do you need to leave something for?
· What about your children?
Property (investments/assets)
· Compile a list of your assets and liabilities. Investments and bank accounts needs to be specified should they be left to someone in particular.
· Property should be described accurately and clearly referenced to the title deed of the fixed property, investment contract numbers, etc. that will make sure that the right asset is bequeathed to the right heir.
Children
· Children younger than 18 cannot sign a receipt on their inheritance. Without a will, your entire estate (including family heirlooms and property) will be reduced to cash, and that cash is paid into the guardian’s fund, governed by master of the high court. The guardian must apply for funds to help raise and educate the child.
· It is much better to create a will trust, where appointed trustees manage and invest the financial assets, keep heirlooms safe, and pay the guardians of the child a monthly amount.
Who should keep copies of the will?
Keep your will in a safe place and leave a copy with someone you trust with clear instructions as to where the original is located.
When and how often to update a will?
Update your will whenever there are any major changes in your life, such as a marriage, birth of a child, divorce, purchase of new property, or the death of a beneficiary or executor.
When your children no longer are minors, you may no longer require the provisions that you had in place for guardians and trusts to administer their inheritance.
It is important to update your will after a change in marital status, particularly after a divorce. An ex-spouse could still be entitled to inherit if the other spouse dies within three months of the divorce being finalised.
Death is inevitable so it’s your responsibility to set aside a few hours to take care of this very important document.
‘At least you will have peace of mind that should anything unforeseen occur, your property will be distributed in terms of your wishes,’ Hutchison concludes.
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