Secure your family's financial future after your death

One thing I’ve learnt about grief from speaking to people and experience is that when someone you love dies, you feel the pain in that moment and your emotions take over.

You then shift to getting busy with funeral arrangements.

It is after the burial when everyone has gone back to their homes and life gets back to normal that it starts to hit you – the one you loved is gone and you will never get to see them again.

Then in instances when the deceased does not have a will (intestate), families will start fighting over who is entitled to get what from the estate.

However, when one dies without a will, the estate will be settled in terms of the Intestate Succession Act, says Riaan Grobler, head of advisory services at Everest Wealth.

While the act provides “a fair” framework, it may not align “with your specific preferences”, says Law Society of SA's Joanne Anthony-Gooden.

“Problems can arise, including delays in appointing an executor, extra costs, and family conflicts due to unclear instructions.”

Grobler says the administration of a deceased’s estate takes months if there are no major and unexpected delays.

“However, without a will, it can take years before your loved ones get what they deserve as your estate is then settled in terms of the Intestate Succession Act to determine how your assets should be divided between heirs,” says Grobler.

“A large percentage of South Africans do not have a valid will in place and this results in loved ones not only having to process emotional trauma upon the death of a loved one but also face financial trauma. Working hard all your life to leave a legacy for your loved ones can have far-reaching consequences due to the absence of a will."

This week is National Wills Week and you can have a will drafted by an attorney for free.

He said this week should not just be a wake-up call about the importance of having a will but also about the significance of regularly reviewing and updating your will.

"There are several factors to consider when it comes to drafting or revising a will. Your will must not only be up to date but also be valid and enforceable and is essential to securing your family's financial future. 

“In the digital age, it is also important to include, for example, your wishes regarding your online presence in your will for when you die, including social media profiles, online accounts and your mobile phone. You can appoint a so-called digital executor to remove your social media profiles and to close accounts for streaming services, e-retailers, email and accounts related to your smartphone. This person can be a family member and must have access to your passwords and other information."

Grobler says when one has a will drawn up or revised, it is necessary to decide who are the beneficiaries of which assets, among other things.

“But also to remember that events may occur that require you to change your beneficiaries, such as in the case of a marriage or divorce or the birth of a child or the death of a beneficiary.

"When you have a will in place, you can nominate an executor and therefore decide who will be responsible for the administration of your estate. A testamentary trust will help protect minor children or the elderly as you can name the trustees who must look after them and manage their financial affairs when you are no longer around. However, things can change and those who were originally nominated for this purpose may no longer be suitable,” says Grobler.

Melody Cloete, training specialist at Bidvest Life, says if one has a will but is married in community of property, the joint estate will be frozen when one spouse dies.

“This means the surviving spouse’s bank accounts and assets will also be frozen, along with their deceased spouse’s. Many people are also not aware that customary marriages are legally regarded as being married in community of property.

“Most South Africans who are married in community of property don’t realise the impact it will have on their family if a joint estate is frozen. During this time, the surviving dependents still need to pay bills, pay for studies, and put food on the table. How do they do that if their access to funds have been cut off?”

None of us want to have relatives fight over our assets, let alone leaving those who should benefit out in the cold.

Take advantage of National Wills Week and have a will drafted. It is the right thing to do to protect your loved ones’ future.

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