Wills and the hidden mine field

All too often we hear of people who had left their estate planning matters to a later date as they were too busy. In a number of cases we are faced with grieving family members and beneficiaries now at risk through Wills that had never been completed or kept current with legislation. Live in an environment where legislation and tax aspects change on a regular basis. Wills should ideally be reviewed regularly, ideally annually. The Fiduciary Institute of South Africa recently estimated that only 10% of the South African population have a Will.

In many instances a simple Will could satisfy these legal requirements, but in a number of cases this may not be true. You do not want your Will to be declared invalid through a technicality and/or to die intestate. Should you die intestate your loved ones can be severely prejudiced as the assets of a deceased person will be divided in terms of the Intestate Succession Act. Those close and dear to you might have to share their intended inheritance with those not so close to you.

Questions you should ask yourself include: Is the Will signed properly? Have amendments been executed correctly? Can the existing Will be challenged through a technicality? Has any personal situation changed since executing the Will? When considering the founding of a Trust, there are a number of characteristics and benefits attached to the various types of Trusts. Where there is no Will or no provision has been made for a Testamentary Trust, monies and inheritance meant for Minors will be held in the Government’s Guardian’s Fund which means that assets forming part of a minor’s inheritance will be liquidated and then paid over to the Guardian’s Fund. Whatever your situation, we advise that you revisit and, if required, draw up and/or update your existing Will as soon as possible. Negligence could have unintended, yet avoidable, consequences.

If you are one of those who feel that your estate planning and Will is not entirely up to date, or would simply like advice, please contact our service provider:
Adrian Van Zyl
General Manager, Warwick Trust & Administrative Services (PTY) Ltd
Tel: 0860 109 147
Fax: +27 21 794 0849
Cell: +27 083 307 0395
and get expert advice and assistance.

Unlike most financial institutions, they draft wills at no cost to our members, if they are nominated as Executors to the estate. They prefer and recommend that a member of your family be appointed as a co-Executor to the estate to ensure that your family’s wishes are carried out and to improve the communications between the Executors, the family and beneficiaries.

February 2012

Posted by SAARP on 15 February 2012