A WILL IS THE KEY

SEPTEMBER marks Wills Month.

Approximately 75 percent of South Africans pass away without a valid will. This often results in distressing conflicts among family and friends following a person’s death.

Mense baklei lelik oor geld as familie dood gaan!

Fortunately, numerous organizations (including banks) offer free will preparation, particularly during September, designated as Wills Month.

Capital Legacy, a frontrunner in wills and estates, has answered some common queries.

What are the criteria for a will to be valid?

In South Africa, for a will to be deemed valid, it must satisfy the criteria detailed in the Wills Act 7 of 1953.

These criteria include:

The person creating the will (the testator) must be at least 16 years old.

The will must be written.

The testator must sign each page of the will as well as the conclusion.

The will’s signing must be witnessed by two competent, independent individuals who also sign each page and the end of the document.

Who can serve as a witness for a will?

A witness must be:

At least 14 years old and mentally sound.

Not mentioned in the will as an executor, trustee, heir, legatee, or beneficiary.

Not the spouse of anyone included in the will.

What distinguishes a Trust from a Will?

A will is a document that outlines your final wishes regarding how you want your estate to be distributed after your passing.

Your will outlines the individuals who will inherit your assets, which may include properties, vehicles, jewelry, investments, etc.

Without a will, no explicit directives exist for distributing your estate, necessitating the application of intestate succession law, wherein the government determines distribution according to a prescribed formula.

It is essential to ensure your will adheres to the Wills Act to maintain its validity.

Conversely, a Trust is a legal arrangement designed to transfer assets to beneficiaries. A Trust demands ongoing management by Trustees but can be an effective component of estate planning.

When properly established, trusts provide financial security, asset protection, and certainty for beneficiaries until they are capable of managing their inheritances independently.

This facilitates financial guardianship for your beneficiaries, akin to a guardian caring for your children.

Specific tax exemptions may apply to the trust, depending on its intended purpose.

This guarantees that inheritances left for minor children or incapable beneficiaries are responsibly managed for their benefit.

If no trust is established for minors or those unable to handle their financial affairs, their inheritances will revert to the Government Guardian’s Fund.

Why do many individuals still pass away without a valid will?

Superstition: Some believe that merely contemplating a will could invite their death or other misfortunes.

Trust: Others genuinely believe their children can adequately distribute their estate based on their wishes, leading them to forgo creating a will. However, it’s well-known that inherited wealth can lead to familial discord.

Too young: Some individuals think that only those at death’s door should be preparing a will.

Insufficient value: Others think their possessions lack the worth necessary to warrant a will.

What are the typical consequences of not having a will?

The government will determine how your assets are distributed according to intestate law, which may not align with your desires.

Settling your estate may experience delays due to unclear directives.

Possible family conflicts may arise regarding asset distribution.

There will be no appointed guardians for your minor children, leaving their future uncertain.

The Law Society of South Africa outlines additional repercussions such as:

Your assets may not reach the individuals you would have selected.

Appointing an executor may take a considerable time, and the appointed executor may not be someone you would have chosen.

Extra, unnecessary costs may arise.

Can the Executor of a will alter anything?

No. The Executor of a Will lacks the authority to modify any aspect of the will.

This year, National Wills Week is scheduled for 15-19 September.

Many organizations will assist in drafting free wills throughout September.

I strongly recommend that you have a valid will created to spare your family the distress of facing the repercussions of not having one when you depart.