Hard lessons from Covid-19

Hard lessons from Covid-19

Some of the recurring themes / problems we have encountered:

1.Wills
Spouses / Life Partners need to ensure that they have a valid Will in place. Wills should obviously be reviewed on a regular basis to ensure your wishes and circumstances remain current. Without a valid will, there is no protection against your assets.

2.Executor
Similarly, does the Family have a relationship with the nominated Executor in the Will (we always recommend that clients steer away from banks)?

A trusted friend or family member can be appointed as the executor, and they in turn have the right to outsource this to a legal professional as “Agency” for them.

3.Updated beneficiary nominations
We have encountered circumstances where both the principal and beneficiary passed away with no “alternate beneficiary”. These apply to retirement investments (Living Annuity/Pension/Provident/Preservation and Retirement Annuities)

4.Financial succession planning
Does your spouse (or children) have financial planning assistance through a financial advisor?

This is possibly one of the biggest problems we encounter. The family member or spouse controlling the finances passes away and the rest of the family “scrambles” to try and piece the family finances together.

5.Liquidity in the event of your death
Have you made adequate provision to ensure your dependents are taken care of in the short term from a cash flow point of view?

6.Liquidity in retirement
Ensure you have adequate liquidity in retirement for capital expenses and to manage your income more tax efficiently.

7.Guardians for minor children
If your current guardians of choice don’t live in the same country as you do, make sure you understand the process required to get your children to the guardians.

8.Power of Attorney
We recommend both a general POA and a bank specific POA (each bank requires its own POA):

Ensure that a trustworthy person / partner has your power of attorney and can transact on your behalf should you be unable to.

9.Trusts
Are trustees up-to-date and has provision been made for alternate trustees should one (or more) pass away. Again, we have encountered circumstances where multiple trustees pass away, rendering the Trust and the Trust Deed invalid.

10.Privately owned businesses
If you have your own business, ensure there are agreements in place including life insurance and “Buy Sell” agreements.

11.Keeping documents central
We always recommend that clients keep their important documents in a safe place where someone else can access them. House deeds, car registrations, retirement policies, other investments, various passwords, etc.

Contact our office to see how we can take these learnings to assist you on your journey towards financial independence. Through careful planning, we aim to ensure you are not faced with the shortcomings we have witnessed in this time.

The opinions expressed in this document are the opinions of the writer and not necessarily those of PSG. The information in this document is provided as general information. It does not constitute financial, tax, legal or investment advice and the PSG Konsult Group of Companies does not guarantee its suitability or potential value. Since individual needs and risk profiles differ, we suggest you consult your qualified financial adviser, if needed.