It is advisable to review your Will at least once a year or at every life changing event e.g. birth of a child.
For your Will to be valid it must be signed in the physical presence of at least two witnesses. Each witness must sign and complete their full name and address in the space provided Important note: A witness cannot be a beneficiary in the Will.
This is absolutely essential as the last dated Will serves as your Last Will and Testament. It's important to keep your Will updated as your circumstances change.
Your original Will needs to be stored in a safe place. When you pass away it must be easily accessible to your family and/or Executor in order to administer your Estate.
If you haven't nominated a second line of heirs then the intestate succession Act may apply to your estate (or a part thereof). Intestate Succession Act, no. 81 of 1987
The Executor ensures that your Estate is dealt with timeously, in the most effective manner and that distributions are made according to your wishes.
It is important that there are sufficient funds in your Estate to cover all debts and expenses, otherwise the Executor may need to sell assets to cover these expenses.
Taxes and fees may be applicable in a Deceased Estate and can be a substantial amount. It is therefore important to establish what the amount of Estate Duty, Capital Gains Tax and Executors fees will be in order to cater for it.
The type of marital regime may have a huge impact on your estate.
It is essential that the marriage contract is taken into account as different contracts have direct consequences and may have an impact on the intended provisions of your Will.
A joint Will is one document dealing with the Estates of both spouses. It is advisable to have two separate wills as circumstances often change after the death of the first spouse.
The loss of a spouse/partner is a personally tragic event, that can have a direct impact on the surviving spouse's day-to-day finances. It is important to establish whether your surviving spouse/partner will be able to maintain the same standard of living when you pass away, with the help of a financial advisor.
A Guardian is a person who has legal responsibility for a child or children when the parents have passed away. If you fail to appoint a Guardian then the Court will decide who will take care of your child(ren). Therefore, the appointment of a Guardian is one of the most important provisions to be included in your Will.
It is important to calculate the funds needed to for maintenance costs, education fees etc. for your children when you pass away. Factors like rising living costs and inflation should be taken into account.
Any assets bequeathed to a minor child will be liquidated and the proceeds will be held in the Guardian's fund which is under te administation of the Master of the High Court. It is advisable to provide for a trust structure to hold the assets to ensure that funds are applied in line with your wishes (e.g. school fees, tertiary education) until your child(ren) reach majority age.
It is essential to consider a buy and sell agreement which may be supported by a buy and sell policy. This is to ensure that the business can continue to operate with as little disruption as possible for your surviving business owner/s, and to ensure that your Estate will receive fair value for your business interest.
Information that may seems insignificant at the time of death may bring the business to a halt if the information is not accessible after your death. It is therefore crucial to ensure that someone in the business will have access to important information after your death.
In the event of your death your creditors may call in the debts and this may have adverse consequences on the financial position of your business. Additionally, the Executor of your Estate may also be forced into selling assets in order to meet surety obligations. A Contingent Liability plan should be in place to ensure that loans are repaid and that your Estate is released from all surety obligations.
If you are a business owner your death could place significant financial pressure on the business. Essential knowledge, skill and goodwill from your customer base may be lost and in addition costs may have to be incurred to recruit and train someone to replacement you. It is therefore extremely important to ensure that you have a succession plan in place.
Often the new business owner does not know your employees as well as you do and therefore does not have the same level of insight into their skill-set and value to the business. It is therefore important to design a plan that will cater for the future of your employees when you pass away.
By executing a valid Will, you can ensure that the interests of your loved ones are protected and that your wishes are carried out.
Advantages of having a Will
Disadvantages of dying without a Will
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