No one likes planning for their death, especially if they are healthy and young. However, it’s a responsibility that everyone with dependents should make a priority. Sadly, only around 30% of South Africans have a valid will and when a property owner passes away without a will, they can leave their family with significant costs and a great deal of anxiety. With early and considered Estate Planning, you can ensure your loved ones are well looked after, even if you are not there to ensure their wellbeing.
What happens if you die without a will
If there is no will in place, then the laws of instate succession apply. These laws direct how a deceased estate is to be distributed amongst surviving heirs. The Department of Justice Master’s Office will appoint an executor to oversee the settlement of any of the deceased’s liabilities and ensure the balance of the estate is distributed according to the terms of the Interstate Succession Act. This directs that the spouse or registered domestic partner should inherit the largest share of the estate – usually the property/home with some allocation to children, siblings, parents and other blood relatives.
Sometimes this means that conflicts within the family can occur.
It must also be noted that the fees of the executor appointed by the state cannot be negotiated and if there are minor children involved in the estate, they will have to apply to the Guardian’s Fund if they need access to estate assets prior to reaching the age of 18.
Having a will in place ensures that the property and estate assets pass to the intended heirs and avoids costly disputes and litigation.
Beware of going the DIY route with your will
For a will to be uncontested in court, it needs to be valid and comply with all legal formalities. Many people might be tempted to go the DIY route using a will template, but any lack of clarity in wording opens your will up to dispute and can lead to divisive and expensive family feuds that could have been avoided with a professionally drafted will.
Estate planning is essential
Without a will, there is no estate plan which means unnecessary worry, cost and delays to your grieving family. Estate planning is the process of arranging your financial affairs in such a way that your estate and the legacy you leave are as large and well-structured as possible. A good estate plan maximises your assets and reduces your estate costs and any tax. Taxes, income tax and capital gains tax can have a big impact on the size of your estate, but this can be minimised with careful planning. What’s more, a well-structured estate plan streamlines the entire process of winding up your estate, so your heirs are paid out as quickly as possible.
For expert and confidential assistance with planning your estate to ensure your loved ones are looked after, according to your wishes, speak to our Estate Planning team today.