Only 46% of women and 63% of men in South Africa have wills, according to Sanlam research.
National Wills Week (12 and 17 September) offers South Africans the right opportunity to empower themselves and protect their legacies.
Moremadi Mabule, Head of Wills Operations at Sanlam Trust speaks about the importance of estate planning and drawing up a will.
Why do you need a will:
According to Mabule, 45% of people who don’t have a will, believe they don’t own enough assets to warrant estate planning.
“Everyone has some form of an asset and having a will in place goes a long way toward helping those who depend on you to live confidently,” Mabule said.
“This doesn’t only include big things like a car or a house, it should also include jewellery, investments, and sentimental items – even digital assets such as photos in the cloud and cryptocurrency.”
For parents, a will allow you to provide proper guardianship of your children and create a plan for the care your pets.
Other factors that prevent people from drafting a will include anxiety over ‘who inherits what’ and a tendency to avoid talking about or planning for when they are not around while 45% of people admitted that they just had not gotten around to doing it.
What you need to consider when drafting your will:
Mabule said that there are several factors to consider when drawing up a will, including if a couple is married in COP (Community of Property).
“When couples get married in COP, they create what is called a joint estate. This means that the instructions they set out within the will deals with half of the joint estate. It also means that half of the joint estate will belong to the surviving spouse.”
For an entrepreneur, a will in place is a crucial part of business succession planning which can help avoid potential disasters, such as leaving the running of a business to minors or people who are unqualified to run the business.
“For parents of children with serious disabilities, estate planning is critical as they may never be able to work and provide for themselves,” Mabule said.
It is also vital that your instructions can be executed.
How you can draft your will?
Mabule said that the drafting of a will can be a relatively easy and inexpensive process depending on your circumstances, making the process more accessible to people who are struggling financially.
“If you have fairly straightforward requirements, you can complete a will application form, prepare a list of assets and liabilities, and write up instructions on what must happen to your estate with the details of beneficiaries.”
“For more complex wills it is advisable to seek advice from a financial adviser,” Mabule said.
Make sure that your will is current
Mabule shares the following example of how important it is to update a will after a major life event.
“In 2009 the mother signed a will that left 40% to each of her children and 20% to her boyfriend at the time. In 2018 she married her boyfriend in community of property (COP) but did not update her will. When she passed, her boyfriend (now husband) was entitled to 50% of their joint estate while her children could only inherit from her share of the estate.”
Mabule said, “Estate planning gives you peace of mind knowing that your intended beneficiaries will inherit and avoid unnecessary turmoil during an already difficult time for your loved ones.”
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