As many people celebrate the start of spring, they should also take the time to have a look at their personal financial documents to make sure that everything is in order.
PJ Veldhuizen, attorney at Gillan and Veldhuizen Inc said that a person’s circumstances, assets, and status can change significantly from one year to the next.
Therefore, it is crucial that people have an annual meeting with themselves to review and rework the administration on their personal estate files as well as adjust the supporting documentation.
You need to revisit and review the following documents, policies, and contracts in your personal estate file:
Your Will
A will is a living document that ensures that your wishes are followed after your death.
Ensure that the executor of your will is still the correct person that you appointed and that your wishes are properly reflected in your will. You should also ensure that your assets are accounted for and that your will is up-to-date.
"In fact, don’t mess around and attempt a do-it-yourself version. Consult an attorney or a professional succession planner and make sure you have a binding legal document setting out your wishes upon death," Veldhuizen said.
Your Trust
If you have a trust set up, it is vital that you do the following things: assess your appointed trustees; make sure that your assets are being managed properly; ensure that your trust is compliant; and make sure that the beneficiaries of the trust are correct.
Insurance
Life insurance: A life insurance policy is often taken out when you have a child or enter the world of being an adult.
Veldhuizen said: "Perhaps your children are grown up, out of the house, and self-sufficient, and a life policy is no longer the best option. It’s possible that better use can be made of the monthly premium as an investment of some sort. Consult your financial planner and discuss your options."
Short-term insurance: The insurance industry is competitive by nature, so an annual review and shopping around may save you money on your monthly premium.
Your Medical Aid
Ask yourself the following questions: Am I getting the most benefit out of your medical aid? Should I upgrade or downgrade my policy?
Speak to your medical aid about a policy review and take a look at the dependants on your medical aid.
When you ask your medical aid provider for a policy review, your provider may offer you better premiums or inform you of new products that might better suit your needs.
Your Bank Account
Review your bank statement and take a careful look at your debit orders and subscriptions. You might be surprised at the amount of unnoticed payments going off your bank account.
It’s important that you scrutinise your bank fees and bank charges and look to see if there are any cost-effective alternatives.
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