Why it’s important for you to have an up-to-date legal will
THE DEATH of someone close to you is always devastating. And it’s not only older people who should put their affairs in order. It’s very important that you minimise the impact your death has by ensuring you have an up-to-date legal will. Simply put, a will is your instruction to your loved ones that explains your wishes. It sets out what needs to happen to your assets and who should receive what.
Dying without a will can cause chaos for the loved ones you leave behind. There are many examples of well-off people having to rent out their property to get an extra income because all their assets are frozen. Dying without a will is called dying intestate. When you die intestate, you effectively give up the right to decide how your estate should be divided and to whom your belongings should go.
Some people that you might not want to leave anything could inherit a portion of your estate. Others who are very close to you could end up with nothing. You might even forfeit your entire estate to the state.
When you die intestate strangers take over the management of your affairs, and a long, drawn out process begins that could be expensive too. The Master of the High Court will divide the estate between the relatives in terms of the Intestate Succession Act, 81 of 1987. He will also appoint an executor.
If you have no relatives, the state will take ownership of the full estate.
If you have minor children, the Master will appoint a curator to administer your children’s property and their inheritance will go to the Guardian’s Fund until they are old enough to receive their inheritance.
Dying without a legal will could mean that the Master of the High Court appoints a “none preferred” person as guardian over your minor children.
Make sure your will is a legal document that is professionally drafted. If anything is unclear or confusing, it can cause unnecessary difficulties for your family. Ambiguous instructions can lead to challenges and legal action from people who may feel that they are not getting what they deserve.
Update the beneficiaries on your policies and pension fund regularly, otherwise the proceeds from old policies that haven’t been updated could go to people that are no longer part of your life, while the ones that you would like to take care of are left destitute.
It is good practice to update your will whenever an important event in your life happens. Get into the habit of updating your will if you get married, children are born, or you buy property or any big asset.
Ask your financial adviser to help you draw up a legal will. Momentum Fiduciary Services can also help you. We guide you and your financial adviser through each step and apart from drafting your will, we’ll also keep your will in safe custody.