Leave a legacy

Where there is a will, there is a way. The popular saying can be applied in many different aspects of life, and death. The somber reality of our death is not something we want to think about, but planning for this day in advance can help your loved ones after you are gone. You do not want them to be in financial trouble or struggle because you did not do your estate planning properly.?

There are multiple ways to ensure your loved ones are taken care of. One of them is drafting a will as early as possible, and adjusting it as circumstances change. What happens if you die without a will??

In South Africa, the Intestate Succession Act will then determine how your assets are distributed, starting with your spouse and children. In the absence of a spouse or kids, the process will go according to your blood relatives, going from parents to siblings and then other relatives. Without a will, you also won’t have a say over who takes care of your estate, or who will take responsibility of caring for your children.?

Remember, it is never too early or too late to draft a will. Anyone over the age of 16 years and sound of mind can legally draft a will. Do not leave your assets to chance. Plan properly, and you won’t have to worry about the distribution of your assets one day when you are no longer around.? Ensure you research to guarantee that your will is legal and binding.?

But simply having a will may not be enough. One of the key considerations is asking what will happen with your debt when you pass away. If you did not make provision for this, your loved one may have to sell your assets to pay the debt you made while alive. One way to take care of this is to ensure you have life insurance or policies that will pay out when you are no longer around. If this has not been considered, your spouse may have to sell assets to pay for outstanding debt.?

While large amounts of money paid out through a life insurance policy or a will are a brilliant foundation, it is important to remember that the ultimate gift to your loved ones would be financial education. The Williams Group is an American-based wealth consultancy and found that approximately 70% of America’s wealthiest families lose their wealth within the second or third generation. How different will this be in South Africa, a country where financial literacy is extremely low??

Knowing how to manage wealth is crucial as this will guarantee a sense of financial freedom for years to come. Therefore ensure your will, and insurance policies are up to date, but if possible, invest in the future of your loved ones by educating them.?

Every single individual’s circumstances are different, so it may be best to consult an expert to assist you with your estate and financial planning.?