The sorrow of a defective will

Thorough estate planning is one of the greatest gifts you can give to your loved ones when you die. The fact that you have a will in the vault is not necessarily the alpha and omega. A will is merely a single element that forms part of the bigger picture of estate planning.?

Karen Eckley, an expert in estate planning and managing director of Trustees for the Future - which is part of the FFG Group, explains the importance of comprehensive estate planning and how your death can create an even greater headache should your matters not be in order.?

“When someone dies, it usually creates an emotional thunderstorm to your loved ones usually accompanied by sadness, sorrow, hurt, and fear. In these times, emotions are extremely dangerous and often lead to differences between those left behind and can grow into family feuds. A well-planned will, preceded by thorough estate planning, will eliminate unnecessary unpleasantness, but it is important that a will should be up to date at the time of the death of the individual concerned.”?

From her experience, an outdated will is one of the greatest headaches. “One's living conditions change constantly, and it is therefore important that your will be revised regularly to ensure that it is still a true version of your wishes. A change in your assets or liabilities also requires an amendment of your will. Examples of changing circumstances can include the birth of a child or grandchild, the purchasing of new assets, a divorce, investment abroad, the start of a new business or your child getting married. All these examples have significant impact on the meaning or interpretation of what is written in your will. For example, you bequeath your assets to your child, but often without considering that your child may die before, or at the same time as you do. Is there a bridging provision in your will that will address this situation? If not, the general terms of the law will apply - which can lead to unfortunate consequences.”?

Eckley however puts strong emphasis on the fact that a will is only a supportive element to comprehensive estate planning. “My advice is always to compile your will as if you were to die today, and then to change it regularly when necessary. Make sure that your will is compiled by a specialist who has thorough knowledge of all aspects of estate planning. What is however particularly important, is that the executor who manages your estate, also be an expert whom you can trust with the prosperity and future of your loved ones. The task of an executor is to administer your estate according to the provisions of your will and to look after the best interests of your loved ones in carrying out this duty. It is a big responsibility that rests on your executor's shoulders and the choice of the person who must fulfil this role is not one that needs to be taken lightly.”?

There are often so many sad and unpleasant cases that occur because of the interpretation of wills where the outcome plays out to be completely different from what was originally meant. Wills that have been compiled in a thoughtless or ignorant manner are often not practically achievable. When one comes to that point, it is usually difficult to change the situation.?

“Remember that the main reason you need a will, is to make those loved ones that are left behind less exposed to losses or wrong decisions which can affect their lives in a negative way. Estate planning involves much more than you might think. It specifically involves the interpretation of the effect of every word that is written in your will, detailed tax implications, practicality, and specific meanings of your wishes, and so on.”?

In the next issue, Karen will discuss the essential things that need to be in place to make life easier for those who are left behind. She will elaborate about the type of documentation that should be in your personal file; about duplicate keys; access to your passwords and more.?

Please visit www.trusteesforthefuture.co.za for more on specialist advice on estate planning and wills. This can only be to the benefit to your loved ones.?