Everything you need to know about Wills

During the later chapters of your life, such as when you get married or have children, you might start to consider whether you should have a will drawn up – and what exactly this document stands for.

In today’s blog, we will be taking a closer look at everything that you need to know about wills, and how you can plan this important document according to your individual needs.

First, let’s take a look at what exactly we mean when we talk about a will.

What is a will?

In its most basic definition, a will is a legal document that specifically stipulates how you would like to have your assets distributed after your passing, as well as your wishes for where the care of your children is concerned, should this scenario fit your family situation.

Although you can write your own will in South Africa, it needs to meet the terms required for a legal will -and often, it is best to consult a professional, such as a trust company, insurer or even a bank to assist you with drawing up your will to ensure that you comply with legalities.

Who needs to have a will in place?

Strictly speaking, any person who is 16 or older can have a will drawn up to express their wishes for their assets’ distribution following the events of their passing.

That being said, as soon as you reach adulthood, and even if you aren’t yet in a formal union or have children, having a will in place will safeguard your wishes for the future.

Once you do enter a union, you can adapt your will – and certainly one consideration you should have is to update your individual will with that of your spouse. Therefore, you and your significant other will both be on the same page when it comes to each other’s wishes.

Also, you need to decide carefully who you would like to act as executor of your estate – and whether you prefer it to be either your partner, someone in the family or a legally appointed professional.

You should have an original signed will safely stored as well, as copies will not be deemed valid.

What happens if you die without a will in place?

Whether you are single or married, not having a will in place can have dire consequences if you had specific wishes that you wanted to be fulfilled, but these were not documented to be referenced following your passing.

If no will is in place, the government will appoint an executor for your estate to distribute your assets according to the rules of intestate succession. In this case, the Intestate Succession Act will guide how assets are allocated, including for spouses, children or family members.

How do you structure your wealth so that the beneficiaries gain the maximum benefit?

One of the best ways to ensure that your dependents will gain financial security and that there will be a safe transfer of wealth is by having a trust in place.

Another consideration is nominating your beneficiaries for your life insurance policy, life annuity or retirement fund, as this will ensure that they receive the funds according to your wishes.

Are there any tax implications?

Although there is no tax implication when it comes to receiving an inheritance, a deceased person’s estate will still be liable for Estate Duty – which means these taxes will be paid out of funds he or she left.

Final thoughts

Having a will in place should be a non-negotiable for any adult. Not only will it give you the control to ensure that your assets are distributed according to your wishes, but also that you also have the guarantee that who is in charge of your estate will have the well-being of your beneficiaries top of mind.

A will can be a daunting piece of documentation to have drawn up, but once it is done and stored, it will be one less thing to worry about in the years to come. And that peace of mind truly is priceless.