Your chosen beneficiaries are at risk of getting little to nothing if you die intestate Where there’s no will, there’s a way – for free
An alarming 86% of South Africans die without having a will, meaning deceased estates are in a state of emergency, according to Momentum financial planner Ernest Zamisa.
He said the master of the high court was snowed under with intestate estates, leaving many widows, widowers, orphans and beneficiaries without their intended inheritance.
“When you die without a will, you will have no input over your estate,” Zamisa said.
“In accordance with the Intestate Succession Act (Act 81 of 1987), your deceased estate will be distributed according to a set formula to your surviving spouse, children, parents, siblings and other family.”
This means your loved ones and/or beneficiaries are at risk of getting little to nothing as some of the assets meant for them will go to someone you do not know just because they are somehow related to you.
If you have not yet drawn up a will, now is your chance to make an appointment with a participating attorney to draw up a basic will free of charge as part of National Wills Week, a joint initiative of the Law Society of SA and its six constituent members – the Black Lawyers Association of SA, Cape Law Society, the KwaZulu-Natal Law Society, the Law Society of the Free State, the Law Society of the Northern Provinces; and the National Association of Democratic Lawyers.
National Wills Week takes place from September 16 to 20.
Fiduciary services manager at Alexander Forbes retail sales and service distribution, Christel Botha, said it made no sense to have no will because in SA you could choose who should receive your possessions.
FNB Wealth and Investments CEO Sizwe Nxedlana said it was concerning that many people believed they only needed a will later in life.
“A will is a vital part of your legacy planning and helps ensure that your loved ones are secure in the event of your passing,” he said.
Alexander Forbes Financial Planning Consultants certified wealth manager Andrew Auld said he had learnt never to understate the importance of the potential conflicts that might arise among relatives if planning was not done thoroughly.
The potential for conflict is even more relevant with the increase in second marriages.
Auld cautioned that the costs of improper estate planning could include broken family relationships, financial hardship for loved ones and excessive taxes.
“Smart planning can help reduce the impact of taxes, as well as ensure there is adequate cash available to settle capital gains tax, estate duty and other costs at death.”
Zamisa warned that without a will, minors faced unnecessary trauma should both their parents die, because the master of the high court – not the people their parents knew or trusted – would put them under guardianship.
In terms of the act, these minors would only receive their inheritance, placed in a guardian’s fund, when they are 18 or older.
Auld said there was no specific fee charged for having a will drawn up with a financial planner because it formed part of the holistic financial planning service offered by the financial services industry.
But if you have a large estate with more complex needs and require more technical expertise, you can expect to pay fees in line with those charged by professionals, such as attorneys, accountants, trust companies and financial planning businesses.
FNB announced recently that its clients could have a will drawn up via the FNB online banking platform at no cost.
Nxedlana said the FNB online wills services would guide you through a step-by-step process for drafting your will.
FNB would keep your original will in safe custody at no extra cost, FNB Wealth and Investments growth head Johan Strydom said.
You can also use online wills provider QuickWill, founded by lawyer and software developer Stella Pickard.
QuickWill charges R750 for its online will-drafting service.
Updates incur a new fee of R750 or you can subscribe for an annual service that allows for storage and unlimited updates for R150 a year.
You can visit the Law Society of SA’s website (LSSA.org.za) or call 012-366-8800 for a list of attorneys offering a free will-drafting service. –
‘When you die without a will, you will have no input over your estate’
Ernest Zamisa
MOMENTUM FINANCIAL PLANNER