Careful planning of your Last Will & Testament today secures your wishes for tomorrow
Important changes to a person’s Last Will & Testament need to be dealt with on a regular basis in order to give effect to a person’s latest wishes.
“Circumstantial changes happen all the time,” says David Nathan, a senior partner at Grant Thornton Johannesburg. “After a year or two there could be considerable amendments to take into account that may have a significant impact on your stated wishes.”
Some examples of changes to consider include the birth of new family members, a recent change in marital status, the demise of an heir, or considerations by a testator or beneficiaries to emigrate.
Nathan adds that it is very important for a testator to appoint an executor who is known and trusted, to deal with affairs in the event of demise.
“Many people also forget to make considerations for the succession of executors in order to ensure that a stranger is not dealing with a deceased’s directions should the appointed executor not survive the testator,” he adds.
More importantly, one of the executors appointed should be a qualified Chartered Accountant or member of a professional firm so that careful consideration of risks and investments are taken into account. Along the same lines, Nathan encourages testators to appoint at least one executor independent of family members so that there will always be an objective viewpoint in the execution of duties.
“It’s all very well appointing family members to save on fees when managing financial affairs, but this can come back to negatively affect the resolution of wishes, with lack of an independent, objective viewpoint, as well as lack of experience in concluding requirements,” Nathan continues.
The proper execution of duties outlined in a person’s last wishes is often a complicated process. There are specific procedures laid down which are to be rigidly followed in terms of the Administration of Estates Act.
Nathan warns that if either the testator or beneficiary in the last Will and Testament is contemplating emigration, this could have far reaching consequences which affect the Will.
“In this event, the testator or beneficiary will need to comply with requirements laid out by the Financial Surveillance Department at the South African Reserve Bank (SARB) at the appropriate time,” says Nathan. “Applications must be lodged through an authorised dealer of the SARB and any requirements that may be prescribed need to be attended to.”
“Some complicated formalities which will need to be assessed for a different country include exchange controls and tax concerns. There is also a need to apply for and obtain the necessary Tax Clearances,” Nathan continues.
Additionally, it is important to note that there is a tariff of fees outlined by the Master of the High Court (“The Master”), and he has the power to moderate the fees for estate executors. If fees are too high, the Master can ask for formal justification of the fees being charged.
“It’s all in the planning,” says Nathan. When drawing up a Will, Nathan advises testators to seek advice and be guided in their thinking, have it signed appropriately so as to comply with provisions of the Wills Act.
Finally, it is vital to keep an original version of a Will in a safe and accessible place so as not to delay the expeditious reporting and administration of a deceased’s estate. Nathan adds that someone reliable must know the location of these important documents too.
“Your last Will encapsulates your directions ensuring your remaining assets are dealt with as you wanted them to be – don’t throw it all away by cutting corners, or not planning carefully,” he concludes.
