Just having a will is not enough

I’m always amazed when I hear someone saying that they don’t need a will because they don’t have dependants or anything of value to leave to anyone. Do they really want an impersonal Act, the Intestate Succession Act, to prescribe what must happen to their things when they die?

Just have a word with people who wind up estates. You’ll quickly realise that grief doesn’t prevent hair-raising stories around families and wills. You can also watch J Blakeson’s movie, I care a lot, on Netflix to get a better sense.?

I don’t have dependants, but I would like my family to benefit when I pass away. I may not have children yet, but I am an uncle and a godparent, and I would want to transfer my wealth accordingly should something happen to me.?

It has been a privilege to be a product of the savings of previous generations, and it is my turn to pass that on so that my nephews and nieces can have easier lives. They should enjoy the fruits of my labour. I want them to be okay, whether I’m here or not.

Maybe drafting your will and updating it ever so often is one of those tasks one dreads – like doing your tax return. But to do it, and do it properly, will save your loved ones a lot of heartache and effort. Being single, I know someone else should know where the latest copy of my will is and that I should keep an original, signed version, preferably in safe custody. I’ve made sure I’ve ticked the boxes regarding enough cash to wrap up my affairs, to pay all the taxes, including estate taxes, and help my family bury me.?

I checked in with my colleague Chris Weyer at Momentum Trust, and he reiterates the importance of proper estate planning. He also says people often don’t consider just how important it is to appoint the right executor. That is the person who must handle all the administration of your estate and report it to the Master of the High Court. What an undertaking: I’ve been told how you turn grey overnight.?

It is complex and a huge responsibility. The estate must be reported within 14 days, which will not be plain sailing for someone overcome by grief. It is very important to ensure that the latest will is lodged with the Master and, therefore, it should be kept safe and easily accessible. Time is critical as the estate is frozen until the Master has appointed the executor. That means if you didn’t make other provisions, your loved ones might be stuck without access to money to provide for their daily needs.?

Apart from the legal pitfalls, the executor must deal with the Department of Home Affairs and the South African Revenue Service to wrap up the deceased’s tax affairs. It is a legal maze to find out which documents are needed – it’s not something the Master’s website tells you in detail. You have, for instance, to draw up the liquidation and distribution account, namely a summary of the assets and liabilities and distribution to heirs, including an estate duty account. And transfer fixed properties. For people with contacts at all the institutions, insurance companies and banks, the process will be much simpler. They do the tedious work to follow up and follow up again.?

You may appoint a family member as executor, but often that is not ideal. Families fight; it’s that simple. If you appoint a family member, they may not be qualified to be an executor and they will need to appoint an agent anyway – a professional with a company or institution.??

There are many advantages to appointing an independent executor from scratch. It is a better way to avoid conflict of interest. The ideal is to use the company or institution that drafted the will.??

Let’s summarise the advantages of an independent executor:

• They relieve your family from many legal and administrative burdens by administering your estate in a professional and structured manner; in turn granting them sufficient breathing room to grieve without distractions.
• The executor provides the family with a road map ahead and provides clarity by answering questions. This, in turn, goes a long way in alleviating anxiety that would otherwise be caused by the uncertainty of what lies ahead.
• They are a voice of reason when conflicts arise.?
• They know how to deal with complexities that can occur even with a “simple” estate.?

Chris explains that one pays executor’s fees for a reason. A professional can save your family a lot of stress, effort and money. “A well-drafted will without a competent executor to administer it is much like a Formula One car being driven by an amateur; likely to crash off the track resulting in lost time and expensive repairs.?

About Geldhelde:

This editorial is linked to Momentum Geldhelde, a money show that helps South Africans to manage their finances better. Viewers can catch season 4 of Momentum Geldhelde every Thursday on VIA TV (DStv channel 147) at 18:00. The show tackles pertinent financial issues facing South Africans today. Momentum is part of Momentum Metropolitan Life Limited, an authorised financial services and registered credit provider. ?2022 Momentum Metropolitan Life Limited.?

*About Momentum Investo:

Momentum’s Investo makes it easy for clients to invest regularly and to stay invested. With their understandable and competitive product offering, Investo helps clients to stay focused and enjoy excellent value when they remain committed to their savings goals.

For more information on the corresponding Momentum Geldhelde episode?on ‘wills and testaments’ click?on https://www.momentum.co.za/momentum/campaigns/general/geldhelde-money-heroes-2022-wills-and-trusts??