By Lyndwill Clarke
According to 2022 statistics from the Master of the High Court of South Africa, more than 70% of South Africans do not have a will and are unaware that this could leave their dependants and families in dire straits when they die.
The Financial Sector Conduct Authority (FSCA) is promoting National Wills Week from September 11 to 15, in line with its mandate to empower households and small businesses to be financially resilient. The week is dedicated to increasing awareness of the importance of having a valid will. By Lyndwill Clarke
The death of a breadwinner in a family brings heartache and confusion, mixed with great uncertainty over how dependants will survive without the provider.
Not having a will, might leave your affairs in disarray and challenges for your loved ones to deal with, including in-fighting among your relatives over your property and belongings.
Having a will gives you the comfort of knowing that the rewards of your life’s work will be distributed and managed according to your wishes.
A will can legally protect your spouse, children other dependants, and assets, but it can also spell out exactly how you would like your affairs handled after you have passed on.
A will is a legally signed document where you set out how you want your estate (that is, the possessions or property of a person, that includes the assets and liabilities left by a person at death) that get distributed after you pass on.
It is designed to preserve and legally protect your assets during your lifetime while ensuring that they are distributed effectively to succeeding generations when you die.
Drafting a will provides you with the opportunity to choose beneficiaries and what you want them to inherit; name a guardian for your minor children; and decide who will manage the funds left to your minor children and ensure that financial obligations are met. If there is debt protection on debt agreements, this can also be listed in the will. Your will contains information about your finances and assets that include businesses, vehicles, houses, furniture or even jewellery, and how this will be shared among your beneficiaries.
Many South Africans, especially those with lower incomes, believe a will to be unnecessary, preferring funeral policies instead. Although this means the family will not be burdened with paying for funeral costs, and there may be a bit of savings lef, it is not enough.
A will is a more sustainable method to ensure that your loved ones continue to maintain a life they were accustomed to when you were alive. If you have a profitable business, it could be protected and not sold, as a will would stipulate who becomes the owner in your stead. This also helps in structuring financial affairs in a way that minimises taxes and ensures that there is enough money in your estate to cover daily expenses while the estate is being wound up.
A will is not only for the rich or the elderly. It can also be drafted by young people from as early as 16 years. Over the years, the document can be updated when your circumstances in life change. It is important to always keep a current, updated and signed will.
There is a belief that the children or the partner will naturally be the owners of the house and everything that the deceased has left. But that is not the case. In instances where a will has not been drafted, it is possible that the deceased’s bank accounts can be frozen, the family could lose their house and other belongings, especially if the bond payments are not kept up to date. Other items that were being paid for could end up being repossessed if there is no legal document that states how the matters would be handled when the inevitable happens.
If you do not have a will, the Law of Interstate Succession will decide who will inherit your estate. This means that the Master of the High Court will appoint a curator to take care of your property and assets and assign a Guardian to take care of your minor children.
This would be an unfortunate end to your legacy, leaving your family in distress.
* Clarke is departmental head: consumer education at the FSCA.
PERSONAL FINANCE
