This National Wills Week is a wakeup call for South Africans to realise that a will is a necessity and that they should make reviewing their wills a top priority.
National Wills Week is a Law Society of South Africa (LSSA) initiative that was started to combat the statistic that 7 out of 10 adult South Africans die without a valid will and to encourage more people to take get their affairs in order.
According to Everest Wealth, a will must be regularly reviewed as circumstances change and then be adjusted accordingly. A will can play a crucial role in determining or regulating your legacy.
Dying without a will (intestate) can cause problems for those you leave behind including family disputes, expensive lawsuits and unnecessary waste of money.
"There are several factors to consider when it comes to drafting or revising a will. Your will must not only be up to date but also be valid and enforceable, and is essential to securing your family's financial future," Riaan Grobler, head of advisory services, Everest Wealth said.
According to Grobler, in this digital age, it is essential to include your wishes regarding your online presence in your will for when you die, including social media profiles, online accounts and your mobile phone.
“You can appoint a so-called digital executor to remove your social media profiles and to close accounts for streaming services, e-retailers, email and accounts related to your smartphone. This person can be a family member and must have access to your passwords and other information,” Grobler said.
When your will is being drawn up or revised it is vital that you decide who are the beneficiaries of your assets keeping in mind events may occur that require you to change your beneficiaries, like marriage, divorce, birth of a child or death of a beneficiary.
"When you have a will in place, you can nominate an executor and therefore decide who will be responsible for the administration of your estate,“ Grobler said.
“A testamentary trust will help protect minor children or the elderly as you can name the trustees who must look after them and manage their financial affairs when you are no longer around. However, things can change and those who were originally nominated for this purpose may no longer be suitable."
Your will must be an accurate reflection of your financial situation, including your assets and liabilities. You should also revise your will if there are any changes to your financial position.
Keeping abreast of changes in legislation and tax implications can ensure that you make informed decisions regarding your estate and will.
You can also communicate important medical care decisions through your will when you are no longer able to decide for yourself.
"Administering deceased estates takes months if there are no major and unexpected snags,“ Grobler said.
“However, without a will it can take years before your loved ones get what they deserve as your estate is then settled in terms of the Intestate Succession Act to determine how your assets should be divided between heirs."
Will vs estate planning
Often people make the common mistake of confusing the process of drawing up a will with estate planning, however, a will is just one part of what estate planning really is.
According to Seugnet Moggee, Partner at Citadel Fiduciary, estate planning is the process by which you and your family arrange the transfer of assets in anticipation of death.
“Estate planning is part of a holistic financial plan that can include wills, trusts, donations, and Powers of Attorney,” Moggee said.
An estate plan should be reviewed and updated regularly to cater for changing laws and circumstances and to provide for different scenarios.
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