September is wills month! In the June 2021 newsletter we wrote an article on “Why everybody should have a will”. In this edition, you can read more about wills and important considerations as well as dying intestate (without a will or without a VALID will).
- If you die intestate (without a will or of a part of your will is invalid), the Intestate Succession Act determines who inherits what and your minor children’s money will be kept by the Guardian’s Fund. This should be avoided at all costs!
- Your will must meet with certain legal requirements to be valid.
- If you have minor children (younger than 18) your will should make provision for the creation of a testamentary trust in the event of both parents passing away simultaneously.
- You will should be aligned with your estate planning. For example, you should take into the account the accrual claim of a spouse when determining what they should inherit.
- Please appoint an executor who understands financial planning and the winding up of deceased estates. We have these experts in PWG!
- Your spouse will have a claim against your estate if you do not adequately provide for him / her in your will.
- Not amending your will when circumstances have changed, e.g. divorce or the sale of an asset which has been bequeathed can have serious consequences.
- You should stipulate contingent plans in case of an heir predeceasing you.
- Don’t assume your residuary heir will inherit the assets bequeathed to him / her. In fact, such inheritance could be completely consumed by income tax, CGT and estate duty leaving no residue. A financial planner should calculate this for you.
- In marriages in community of property, you can’t bequeath the whole of an asset; only half your half share in such asset.
- Ensure sufficient liquidity (cash) in the estate to cover debts and costs, thereby avoiding the need to sell assets or for the heirs to contribute cash to the estate.
- Avoid making bequests of assets, which contradict the nominated beneficiaries in life policies and certain types of investments. The beneficiary nomination in a policy, for example, overrides the nomination of an heir on the same policy in a will.
- One should consider unfulfilled obligations in terms of a previous divorce. These are just some of many considerations when it comes to putting together an estate plan and a will which is aligned with you wishes and estate plan. Speak to us without delay of you would like to avoid chaos and hardship for your loved ones!