The state of wills in South Africa
Financial advisors play key roles in shaping South Africans’ future financial security, yet a glaring gap remains in one of the most fundamental aspects of personal finance: will drafting.
The latest Sanlam Legacy Wills Survey set out to highlight South Africans’ views on building a legacy and the barriers they perceive or experience in attempting to do so. More than a thousand South Africans were interviewed, across different income brackets and age groups. The research reveals a clear (and concerning) disconnect between stated intentions and actual estate planning:
- As many as 98% want to leave a legacy when they pass away.
- Only 39% currently have a will.
Key findings in the research report help financial advisors bridge this gap when advising clients on wills. Here’s a quick look at three overall insights:
- #1 reason for not having a will is respondents believing they don’t own enough.
- 78% say they would most likely turn to a financial advisor for information on wills.
- Higher-income groups are more likely to have wills, but there are gaps across all income brackets.
Disconnect between belief and action
The research shows that the idea of having a will is widely accepted and prioritised. However, the emotional weight of thinking about one’s own mortality, good old procrastination (that we all suffer from!), and the lack of a sense of urgency when it comes to estate planning mean drafting a will is perpetually a task “for another day”.
Where financial advisors come in, is the tremendous opportunity that is created by this disconnect between belief and action. Advisors can reframe will drafting as an act of love for the people a client cares about, and a way of living with confidence and an eye to a more secure future, as well as a component of financial literacy. Far more than a piece of legal paperwork!
Role of the advisor
One of the most encouraging takeouts from this research is the trust that clients place in the role of a financial advisor. Across the board, respondents indicated they would prefer to engage with an advisor over any way of drafting their wills, including using online tools or other DIY options. Even so, only a small percentage have actually had that conversation with an advisor.
We can guide clients through emotional decisions, helping them understand the implications of dying intestate, and showing them how wills fit into the bigger picture of financial legacy and intergenerational wealth.
The results of this research help us unpack the following:
- The disconnect between belief and action when it comes to will drafting.
- Why clients say they trust advisors the most, and how to leverage that trust to grow your business.
- The barriers that stop people from drafting wills, and how to overcome them.
The Sanlam ‘Dirtiest Word’ research reveals that the second most avoided finance topic for South Africans is their wills. Our mission is to normalise these conversations. As tough as they can be, they’re critical because the choices we make impact the people we love most.
Now is the time to shift estate conversations from administrative to aspirational. Legacy is not just about wealth; it’s about values, peace of mind, and taking action.
To watch a short video about this research, click here
https://youtube.com/shorts/gH8D1hf0UME
For the full research report and a wide range of insights, click here https://www.sanlamonline.co.za/financialplanning/wills-trusts-and-estates/sanlam-legacy-plan-survey/
