The freedom your final wishes grant

Jan Dawid Lu ig

Whether we’re old or young, single or in a relationship, rich or poor – all of us should have a valid last will and testament.

If you die without an authentically executed will, the chances are you’ll die intestate. This doesn’t mean your assets will be forfeited to the State. Rather, you forfeit the freedom of deciding who inherits what, who’s your executor and who administers your minor children’s inheritances.

SA law recognises the “freedom of testation” principle: A person who executes a will has the freedom of ability to, among other things, nominate any person and/ or institution to act as the executor of the estate and trustee of any testamentary trust created in terms of that will; as well as nominate any heir to the assets that form part of the deceased estate. You’re also allowed to express your particular wishes on matters like cremation, organ donation and being kept on lifesupport (“living will” concept).

However, the above principle is restricted. Any nomination of executor, trustee and heir, as well as your wishes regarding cremation etc, can’t be illegal, undue or against society’s generally accepted moral values. If they are, your will could be invalid, which may result in the Intestate Succession Act’s provisions being applicable when your estate must be wound up.

Here are some important guidelines to follow when considering your will.

Obtain professional assistance for compliance with legislation, and also to ensure your will reflects your wishes and is taxoptimal.

The executor is the person and/or institution responsible for winding up your estate and effecting the stipulations in your will.

It’s advisable to nominate someone you trust, who will act with absolute honesty, integrity and professionalism in carrying out your last wishes.

An executor is entitled to a fee of 3.5% of your estate’s value.

In SA, death triggers a range of potential taxes from estate duty, and capital gains tax to transfer duty. A professional can assist you by crafting a proper estate plan that takes into account all taxes.

Your will falls into the short-term planning category and justifies regular revision, at least once a year. Changes in legislation, marriage, births, adoptions, retirement, divorce, etc. all impact.

Jan Dawid Luttig is Citadel’s Fiduciary Partner. This article was first published in The Citadel Investor 2017.

Moneyweb

Amid political turmoil, declining economic growth and uncertainty over the past three years, it would have been easy for SA investors to say let’s take our money and run.

Old Mutual Wealth’s Dave Mohr is opposed to such a knee-jerk reaction.

However, he still believes it’s prudent to invest money offshore, even on top of the roughly 50% exposure a typical local balanced fund would already have.

Investors must recognise that offshore exposure through locally listed companies like Naspers, Richemont and a few mining firms is very concentrated, he said at a recent Financial Mail and Old