Mariska Redelinghuys, Legal Specialist at PSG Wealth explores the implications of not having a will

Many people consider estate planning and having a will something exclusively for the wealthy or elderly. Unfortunately, life is unpredictable, and everyone should have a will to make their final wishes clear in the event of their passing. Not having a will can result in costly and complicated legal processes for your loved ones after your passing.

Taking the time to plan now can help protect your future and provide security for family and loved ones

The importance of a will – even if you have few assets

Your will may be the most important document your will ever sign, because it is the primary document that will be used to implement your estate plan – or how you want your assets, liabilities and care for loved ones to be managed after death.

Legislation allows for an individual to draft a will from the age of 16. Even if you don’t own a car or property, you may have other assets that must be administered. Something like the balance on your bank account – or current account – is considered an asset and will therefore be part of your estate. If you pass away intestate – without a will – your estate will be distributed according to South Africa’s intestate succession laws, and not according to your wishes.

More than directions on how any assets should be treated, your will can also contain other important wishes such as burial or cremation preferences, whether you are an organ donor, and nominated guardians for minor children, if applicable.

This proactive approach not only provides financial security but also facilitates easier decision-making for your family during a difficult time. Effective estate planning is a thoughtful way to protect those you care about and provide them with peace of mind for the future.

Appointing an executor

An executor is the person you appoint to distribute your estate in in terms of your will. This is an important step in the process to ensure that your estate is administered according to your wishes, any debts and taxes are settled, and your assets are distributed to your beneficiaries in accordance with your instructions. While we tend to focus on the duties of the executor of a deceased estate, we should also recognise the privilege that comes with it, namely, honouring the fulfilment of a person’s final wishes.

Should you die intestate, the Master of the High court will appoint an executor nominated on your behalf. Nominating your own executor as part of your estate planning therefore safeguards the fulfilment of your wishes.

When to review your will and estate plan

Changes in your personal circumstances are always a prompt to review your will and estate plan. Such circumstances typically include getting married or divorced, growing your family or purchasing additional property. Also remember changes in external circumstances that may impact your estate plan, such as changes to the financial and regulatory environment. For example, amendments to the Trust Property Control Act may impact the management of your family trust. Similarly, annual reviews of tax laws may allow for additional exemptions or impose higher tax rates, which may in turn necessitate putting estate planning structures in place or updating existing ones. It is therefore important to be proactive and schedule regular updates with your financial planner, rather than only doing so in the wake of big life changes.

Seek expert guidance

Estate planning isn’t just about having a will, it’s about carefully considering all aspects of your financial situation to ensure your loved ones are taken care of. Speak to a financial adviser to connect with a specialist you can trust to carry out your final wishes with competence and respect. Secure your loved ones’ future and your peace of mind.