Wills: why bother?

That’s according to Tertius Geldenhuys, National Head of Will Services at Nedgroup Trust, who also says somewhat surprisingly, while everyone knows they will pass away at some point, relatively few have drafted a legal Will to ensure that their wishes are carried out after death.

 

Research by financial advisory Unbiased.co.uk last year found that in the UK, 56% of adults had not made a Will, with single people and those under the age of 35 least likely to have one in place. Apathy and misinformation about the cost of doing so were among the main reasons why respondents had not drafted Wills. While figures in South Africa are not available, it is likely that even fewer adults have planned adequately for the support of dependents and distribution of their estate after their death.

 

 

When a person dies without having prepared a Will, numerous challenges arise. One such challenge is that the distribution of assets will then be determined by a set formula known as the rules of Intestate Succession. This formula may be far removed from the true intentions and wishes of the deceased, it could also mean that winding up the estate may take many months or even years.

 

Distribution of the estate can be complicated by divorce, the type of marriage contract the deceased had, common law marriage arrangements, heirs who may have become estranged, heirs who are born after the death of the deceased and heirs born out of wedlock. Where marriages have faltered and family relationships have broken down, disputes may arise over the ownership or sale of property, assets or business shares and the allocation of the proceeds.

 

Through proper estate planning with a legal, up-to-date Will, you will be able to spare your dependents lengthy legal processes, financial problems and possible disputes for years to come. This is particularly important if you have children, special needs or disabled dependents, a common law marriage or existing disputes within your family.

 

With the help of a legal and/or financial advisor, you can structure your Will to ensure that the unique needs of your dependants are taken care of in the best possible way after your death. For example, you may not wish to leave a lump cash sum to your teenager, and might prefer to set up a trust fund executed by your bank, to ensure that the teen’s education needs and living expenses are covered in a sensible and sustainable way. Or, you might want to leave a legacy to a friend, employee or charitable organisation that would not normally be considered as a beneficiary under the Intestate Succession Act. You may even want to ensure that an item of sentimental value is given to a particular person.

 

When professionally drafted to meet all the necessary legal requirements your Will provides you with peace of mind that you have:

 

• Legally stipulated how your money, property and possessions should be shared

• Ensured that your loved ones are taken care of when you are no longer there for them

• Appointed an executor you can trust to administer your estate objectively and professionally

• Set up any necessary trust, known as a testamentary trust, to protect your minor children’s financial interests or for possible claims against your estate – for example maintenance claims as a result of previous marriages

• Nominated a guardian where children are minors

• Provided for the care of disabled or aged relatives

 

Nedbank’s Financial Planners countrywide help clients to set up a Will or a trust, and serve as nominated executors to ensure that the stipulations in the Will are met. Nedgroup Trust is the oldest trust company in South Africa with a wealth of expertise and experience. Its financial advisors are also in a position to advise you on providing for the costs that will become payable on death, including executor’s fees, capital gains tax and estate duty. They will help you calculate whether your investments and life cover are sufficient to provide for your family in the way you would like, and advise on the best way to structure your Will to ensure that your wishes are carried out.