The importance of a having a valid will
Author: Marcel Opperman • August 26, 2022
September is Wills Month
September is Wills Month, where we raise awareness with all citizens of South Africa, to ensure they have a valid will in place.
The importance of having a valid will in place cannot be stressed enough.
The statistic of South Africans that do not have a Last Will and Testament in place is currently sitting at around 70%. This is a very worrying statistics to look at, as the potential financial implications loved ones could face can be catastrophic. Most people know that they need a will, but simply do not make the time and effort to get everything documented correctly.
What is a will:
A will is a legal and binding declaration of your wishes regarding the disposal of your property or estate when you pass away. Your will is a written document legally executed by which a person makes disposition of your estate to take effect after death. Assets can include, but is not limited to property, capital, investments, vehicles, business interest and personal possessions.
Reasons for having a will:
- A valid will allows you to stipulate your last wishes,
- Who should inherit your assets
- Who should act as executor for your estate and the winding down of the estate administration process,
- Should you have minors under the age of 18 - Who you wish to nominate as guardians for your minor children,
- Who should act as the trustees of your testamentary trust for your children should they inherit assets.
A valid will enables you to protect the interests of your loved ones and helps ensure that there are no unnecessary delays in settling your estate after your death.
It is important to have your your will drafted by a professional. Too many times we have encountered wills that have been drafted with little to no knowledge on everything that has to be stipulated in a will to make the document legally enforceable and ensure the requirements of the law are met.
We also advise our clients to appoint a professional in the field of estate administration to be the executor of their estate. There is a lot of responsibilities that lies on the executor. They have to deal with the deceased creditors, pay certain applicable taxes, transfers of fixed assets and also deal with the grieving family. If not done correctly as prescribed by law, serious consequences can arise for the executor in charge.
The disadvantages if you die without having a will, is that you die intestate, which means the Master of the High Court will then appoint an executor to handle the administration of your estate. This is extremely dangerous, as your wishes might not be fulfilled by the appointed executor as you intended to, because the executor need to determine themselves, who should have inherited what assets. This may leave beneficiaries with less than intended, make your estate more complex or create complete chaos within a family
Advantages of having a last will and testament
- A well-documented plan always ensures that no uncertainties will arise after the passing of a loved one. By defining a clear and concise instruction on how your assets should be distributed, you ensure that your estate will be easy to administer,
- The parent nominates guardians for their minor children. The guardians should be people the parents and children know and can trust. The parents should also keep in consideration by appointing these guardians, that it would not be a major disruption for their children’s circumstances and current lifestyle, should they look after them. It is not guaranteed that the Children’s Court will appoint your nominated guardians as permanent guardians as a social worker will interview them and thoroughly investigate them and their circumstances. It is also important to get permission from the guardians first if they are comfortable to become the legal guardians of your children, before nominating them in your will.
- By stipulating that any asset that is inherited by a minor beneficiary should be paid to a testamentary trust, you ensure that these proceeds do not go the Guardians Fund. The Testamentary Trust can be managed professionally through an attorney, trusted relative, financial advisor or a trust company. These trustees then ensure that all assets inherited by minor children are being managed in their best interest. They ensure that value is being created in these assets they inherited, manage their finances and ensure all lifestyle expenses of the children are taken care of.
- Having a last will and testament with a testamentary trust for minor children makes it significantly easier and faster to access funds for the children.
- A last will and testament avoid confusion and fighting among relatives as far as assets are concerned as you can clearly document who inherits what, and appoint a trusted executor to manage your estate.
Firestone Capital Group wants to ensure the process that follows after a loved one has passed away is made as easy as possible, We want to ensure the necessary planning has been made to ensure seamless transfer of inheritance to the heirs.
We have a dedicated department at Firestone Capital Group that can assist with the process of will drafting and estate administration. Our legal experts have the knowledge and required experience to provide you with professional advice on how to structure your affairs should the unthinkable happen.
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World Mental Health Day 2022 - set yourself up for mental success. We are here to ensure you are mentally healthy. We will take care of you.
