Why a will is so important

Feel free to reach out to PSG Wealth Adviser  Carin Grobbelaar  directly

Every individual (aged 16 and older) who owns a bank account or any other asset should draft a Will. Creating a Will is about having control over your estate and making provision for those you leave behind. With a valid Will in place, unintended consequences may be avoided after your death. You decide how your estate is to be distributed. Dying intestate (without a Will) means there is no guarantee that your wishes will be carried out.

It’s not easy to discuss or plan for your death. It can be a daunting and uncomfortable topic but giving it priority is essential – for the sake of your loved ones. Dying is inevitable but knowing that you have a valid Will in place provides peace of mind to your loved ones, giving them clear guidance on how to deal with your assets after your death.

A valid Will offers many other advantages too, including the power to appoint guardians for minor children. A valid Will enables you to make an informed decision as to who should take care of your minor children. In the absence of a Will, the court must decide between family members and a government-appointed guardian.

A valid Will also provides a useful record of your assets – including assets your family members might not even be aware of. This ensures that all your assets are distributed to your loved ones. By appointing an executor in the Will, you decide who should be responsible for the administration of your estate while also being in a position to negotiate a reasonable fee upfront. As the executor is playing a key role in the administration of your estate, make sure that you appoint a person who is honest, reliable and well organised (not necessarily a family member).

Proper estate planning can ensure that capital gains tax and estate duty are limited, but it is important to do this exercise as soon as possible. A valid Will may also be used to forgive debts and create structures to take care of your loved ones after your death.

What are the consequences of not having a valid Will?

You will not be able to decide who should inherit your assets, and what each person should get. Your estate will be distributed according to the rules of intestate succession. Moreover, the intestate distribution may attract capital gains tax and estate duty that could have been avoided.

If a person dies without a valid Will and if no guardian has been appointed for minor children, their inheritance will be transferred to the guardian appointed by the court, in the absence of which the inheritance will be paid into the State’s Guardians Fund. Family feuds often arise when family members fight over the distribution of an estate if final wishes have not been clearly documented in a Will. This may lead to costly legal proceedings delaying the wind-up of the estate by years.

South African citizens are entitled to draft their own Wills. This is called ‘freedom of testation’. However, at PSG Trust, we believe every individual also has a responsibility to have a valid Will drafted by a professional person or institution.