OPINION: The importance of a will

If you do not have a will at the time of your death, a will is imposed on your estate by the intestate succession legislation in South Africa. This means that your desired inheritors may ultimately not benefit, or at least not in the manner in which you wanted them to. It also creates unnecessary delays in winding up your estate and the funding that is meant to go to your dependents will be placed on hold until your estate has been closed.

Drawing up a will is a simple exercise and can be done through a lawyer, your bank or a trust administration company.

When drawing up a will, consider the following:

• Refer to a professional to make sure that your will complies with legislation and is also practical in operation.

• Make sure that you have sufficient money in your estate to take care of your dependents for as long as is needed. A life cover policy is a cost effective way of making sure that there is enough funding to settle any debts and taxes, as well as give your children financial security.

• Appoint a guardian to take care of your children.

• Understand the implications of your marital status on your assets. For example, if you are married in community of property, you and your spouse own your assets together and these would have to be shared upon death before any bequests are honoured.

• Keep it as simple and practical as possible. Have it written in your home language and have an independent third party read it to check that there are no ambiguities and that their interpretation is the same as yours.

• Keep a folder with your most updated will and any other letters to loved-ones in a secure place and inform one or two people closest to you of its location.

• Review your will every three-to-five years. It should especially be updated to reflect any life changing events such as divorce, marriage or the birth of a child.

Geraldine Macpherson is a legal marketing specialist at financial service provider Liberty Life.