- Surveys show that more than a third of participants haven't found time to make a will.
- Consider trusts for children, antenuptial agreements and charity givings when drafting your will.
- Consequences of not having a will include having the government distributing your assets.
Did you know that the number one reason South Africans don't have a will is procrastination?
Yet many of us find time for leisure activities and other things! A recent survey by Capital Legacy showed that 37 percent of respondents who didn't have a will attributed it to lack of time, 18 percent believing they didn't need a will and 12 percent saying they didn't know where to get their will drafted.
Life comes with unexpected tragedies. The untimely passing of Savage Beauty actor Mpho Sebeng at just 30 years old in a tragic car accident has still left the entertainment world reeling.
READ MORE | National Wills Week: What happens when your partner dies without leaving a will behind?
When drafting your will, it's important to get the basics right to ensure it is valid and that there are no issues or disputes when the times comes to carry out your final wishes.
Craig Harding, executive director of fiduciary services and newly-appointed CEO of Capital Legacy, breaks down the ins and outs of drafting a will.
Wills 101
To ensure your will is valid in South Africa, it must meet these requirements:
- The person making the will (testator) must be 16 or older.
- The will must be physically signed in wet ink, in other words pen on paper - not electronically.
- Each page and the end of the will must be signed.
- Two competent, independent witnesses must also sign the will, being present at the same time as the testator.
Who can witness a will?
Witnesses must be:
- At least 14 years old and of sound mind.
- Not mentioned in the will as executor, trustee, heir, legatee, or beneficiary.
- Not the spouse of anyone named in the will.
3 things you probably haven't considered (but should!)
1. Trusts for minor children: If you have young children, consider setting up a testamentary trust in your will. This allows you to appoint a trustee to manage the inheritance on behalf of your children until they reach the age that you specify in your will. In South Africa, minors cannot inherit directly, so a testamentary trust ensures that their inheritance is managed responsibly and according to your wishes.
2.How your antenuptial agreement affects your will: Antenuptial agreements dictate whether you're married in or out of community of property, impacting the division of assets and debts upon your death.
3.Charitable giving: Consider leaving a portion of your estate to a charity or cause you care about. This is not only a meaningful way to leave a legacy but such bequests can also have tax benefits for your estate.
5 consequences of not having a will
1. The government decides the distribution of your assets according to intestate law, which may not align with your wishes.2. Delays in settling your estate due to the absence of clear instructions.3. Potential family disputes over asset distribution.4. Unintended beneficiaries receiving your assets.5. No provision for, or nomination of, preferred guardians for your minor children, leaving their future uncertain. (The same would apply to your furry children.)
How important do South Africans think wills are?
The Capital Legacy survey revealed that wills top South Africans' to-do lists in terms of how they rank personal finance tasks, with the order being sorting out a will, medical aid, retirement saving, life insurance, home and care insurance and lastly, a funeral plan.
