By Ross Marriner
The month of September is recognised in the financial planning industry as wills month. During this month, certain legal practitioners offer to assist with the drawing up of wills for a reduced fee or even without charge, so it might be an appropriate time to take advantage of this opportunity.
A last will and testament is a legal document that forms the cornerstone of your estate plan. It is there to facilitate the orderly administration of your estate in the event of your death.
Research has shown that around 70% of working South African adults do not have a will. Where there is no valid will, your estate will be regarded as intestate, in which case the authorities will determine the allocation of your estate.
If you die without a valid will, prescribed rules will apply and your estate will be administered in terms of pre-determined legislated guidelines known as intestate succession. Your wishes will not be considered and your estate will be divided amongst your heirs and beneficiaries in terms of the rules of intestate succession. This means that some of your assets or belongings could end up being allocated to beneficiaries against your wishes.
If you do have a will, it is vital that you review it on a regular basis to ensure that it is up-to-date, because your circumstances may have changed. If you do not do so, you may end up bequeathing assets to someone who you no longer wish to support. You may also have decided to leave someone or a particular institution a certain amount of money. It would be prudent to re-evaluate these decisions every few years because inflation erodes the value of money over time.
A will does not only deal with the distribution of your worldly assets, but in it you can also stipulate specific instructions, such as the nomination of a guardian if you have minor children, as well as the person you would like to nominate as Executor of your Estate.
It is extremely important that your will is prepared correctly to avoid it being rendered null and void by the Master of the High Court. If you have a complicated estate, you should consult with a qualified professional who specialises in these matters, to ensure that your will is drafted in such a way as to express your wishes correctly and comprehensively.
Once you have drafted and signed your will, the original should be stored in a safe place where it can be easily accessed by your loved ones in the event of your death. It is also a good idea to leave a copy of your will with someone you trust.
Losing a loved one is hard enough for the surviving family members. Having to deal with the stress, costs and anguish of a contested estate at such a difficult time is something to avoid. Keeping your will up-to-date will ensure that you leave the legacy of your choice and your estate is distributed in accordance with your wishes.
Rands and Sense is a monthly column, written by
Ross Marriner, a CERTIFIED FINANCIAL PLANNER® with PSG Wealth.
His Financial Planning Office number is 046 622 2891
