The Most Important Reason Why You Need To Have A Will

Most of the time, having a written will would never be a priority, because we don’t usually like to entertain the thought that we’ll one day be deceased. It also feels like a lot of work to sort things out, and its normal and natural to just defer the tasks to an unknown, future date where our mortality is more apparent. Nevertheless, having a last will and testament is among the most important things for us to have in place. This is because a will protects your family and your assets, making sure they go to the right people.

Without a Will, you have no choice over the Distribution of your Estate 

In the event of the absence of a written will, intestate laws will take over; in your demise, the “Intestate Succession Act” will take over and dictate which people (family members) get to inherit your estate and how your estate would be distributed based on an established format. 

However, most people would have different family backgrounds, traditions and preferences and whilst the established format may suit society, it may not best suit the needs of your family.

An example: If your parents are relying on you for allowance, in order to have a reasonable retirement lifestyle, and something were to happen to you; your estate would be split 50% to your spouse and 50% to your children. As a result, your parents are now dependent on the goodwill of your spouse to allocate part of his or her sole income to their needs.

Would you like to adjust the allocation so that you could provide for your parents, even in your absence?  

Another example: If a couple were to pass away together in an accident and they have no children, the older person will be deemed to have passed on earlier. So, assuming the older person is a male, based on the Intestate Succession Act, his parents and wife would receive 50% each whereas his wife’s estate would go fully to her parents. So, his estate would be distributed 50% to his parents and 50% to his in-laws (through his wife). 

Would you prefer your parents to receive the full 100% or give half your estate to your in-laws? 

With a Will, you get to decide.

Most people have different plans when it comes to deciding on the distribution of their estate. 

Some people may want to leave behind gifts for close friends and relatives, and also leave behind something extra for charity. Others would prefer to deny their estate from an estranged family member and distribute more to supportive loved ones. 

Having a written will, enables you to communicate your will and dictate to whom you would like to leave your estate to, and under what circumstances. 

Going above and beyond

Further to communicating your preference for your estate distribution, through your will, you can also name a trusted executor who will administer your estate on your behalf and make sure that things are in order, preferred guardians for your children, and trustees to manage your trusts (which contain your assets) that would benefit your beneficiaries. 

Wills are formal documents that have traditionally been completed by a lawyer in their professional capacity. However, in recent years, financial consultants help to facilitate the creation of a Will and the lawyer facilitates the official completion of the Will.

This is because trusted and competent financial consultants who care for their clients and understand your family circumstances will bring up various perspectives and angles for you to think through, for your better decision making and could also assist in finding the best way to raise money for your estate in the most cost-effective manner through insurance.