Why You need to make a Will Now is essential reading, do not put this off. You work hard. You follow the advice of financial professionals – and we include ourselves in that – and pay attention to budgeting, saving, and even investing, so you can build wealth.
In fact, building wealth is something you pay careful attention to, not only so that you can enjoy a more comfortable life now, live those ‘golden years’ after retirement with less stress (and more nice stuff) and leave something behind to your loved ones to help them after you are gone.
Contrary to what you might think, we are not about to launch into a pitch for the merits of life insurance (although that is important) Instead we are going to ask you a simple question; have you made a will yet?
The simple fact is that even if South Africans are getting smarter about money – and they are – they are not getting smarter about making a will. In fact, about 75% of South Africans die without one. Which could turn out to be one of the biggest financial planning mistakes they ever make, at least as far as providing for their loved ones.
Why You Need to Make a Will Now
What Happens if You Die Without a Will?
If you die without a will in South Africa, the law and the government do have you covered. The Intestate Succession Act caters to those who die without a Will and the government will wade in and divide up your assets in the way they deem fit. But often the way they decide to allocate your assets may not be the way you intended.
What, for example, if you die and the succession laws deem that all of your assets go to your technical next of kin – your parents or siblings – because you and the partner you love very much didn’t get married? Or the law apportions the distribution of your assets in a way you never would have intended, leaving one of your kids without the stuff you’ve been saying for years they could have after you were gone.
We are fortunate here in SA that we have the privilege of freedom of testation. This gives us the freedom to decide how and to whom we want to leave our estate once we pass away. There are certain minor limitations, like the Will’s instructions must not have illegal intentions, but for the most part, a Will can divide an estate as you, not the government, see fit.
Why You Need to Make a Will Now
Advantages of Having a Will in Place When You Die
You will have many advantages as the testator of your own will:
You can choose your beneficiaries based on the nature and size of your estate as well as the requirements of your family. You don’t have to limit yourself to family members; you can honor anyone or any cause you like. You can also exclude someone.
You can choose which assets to give to various beneficiaries, as well as what proportion or value of your assets to leave to them. It’s possible that you’ll want to leave certain things and quantities to specific recipients. If you die intestate, on the other hand, your beneficiaries will only be entitled to a fixed and equal share of your estate.
If the original selected beneficiary is unable to inherit for some reason, you can name an alternate beneficiary. If the nominated beneficiary passes away before you, for example.
You have the option of imposing limitations on a recipient before they are eligible to receive the benefit, as well as how they may or may not use the inherited benefits. A frequent limitation is to bar a beneficiary’s spouse from making a marriage claim on the bequest.
You can select what will happen if a recipient is unable to manage the inheritance, as well as how the ultimate beneficiaries will be protected. To safeguard minor children or incapacitated beneficiaries, you can utilize mechanisms like limited interest and a testamentary trust.
You can align the scheme of your Will with the rest of your estate planning tools. Ante-nuptial agreements and inter vivos trusts are common examples, as are benefits derived from sources normally outside the estate, such as retirement pensions, pension funds, and life insurance policies, or other assets, such as offshore interests.
You have the option of selecting the executor of your estate. You can also decide on the executor’s rights and whether or not you want the executor to offer security.
If you don’t have a Will, you won’t be able to take advantage of estate duty savings and other protection features.
In the terrible event that you die while your children are minors, you can appoint a guardian to care for them.
Having a well-written Will on hand at the time of your death will aid in the administration process and limit any potential disagreements or conflicts among family members. No, you won’t be around to see it, but these kinds of disagreements can have a devastating effect on those left behind.
Why You Need to Make a Will Now
Why Don’t People Make Wills?
If making a Will is so sensible, and offers so many benefits, why do so many South Africans die without one?
Making a will is not a hugely expensive undertaking, and if you work with a professional, it won’t be a time-consuming one either. The fact is that most people don’t make a Will because they think it’s too soon – who needs to make a will when they are in their thirties or forties? – or the spectre of their own demise is too spooky to deal with.
We get it. No one wants to think about dying too much. But it can happen at any time. That’s not gruesome, just a simple fact. The COVID pandemic has brought that home to many, sadly. Lots of those upbeat self-help gurus always say live every day like it’s your last because it could be. And they are right. They just don’t mention that living that way should include having a formal will in place. But they should, and we will.
Making a will – the feeling a bit weird emotional aspect of it aside – is not hard. We can make it very easy. We’ll ask you some questions and do the rest, even showing you, how you can ensure that your loved ones get more money and the government does not gobble too much up. Contact us today – no really, today no more procrastination allowed – and let’s get started. Contact one of our consultants now
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