Durban - Not taking care of estate planning or not having a will can have a significant impact on the dependants of the person who passed.
45% of people who don’t have a will believe that they don’t have sufficient assets to draw up a will while another 45% said they had not got around to creating one, according to a Sanlam survey.
“The general rule is that only blood relations of the deceased and their descendants may inherit should someone die without a will. This includes children, grandchildren, parents, brothers, sisters, grandparents, uncles and aunts. The surviving spouse and legally adopted children are exceptions to this rule,“ says Moremadi Mabule, the head of wills operations at Sanlam Trust,
Mabule said nobody else, even if they were financially dependent on the you, can claim under current legislation.
Why South Africans are less likely to have a will?
Financial literacy or the lack thereof plays an important role in the reasoning behind many South Africans not having a will.
Mabule also highlighted procrastination as another factor that contributes to the lack of estate planning.
Why are the benefits of having a will?
Some of the benefits include:
- You have the final say, even after you have passed away.
- You can decide how your assets will be distributed and provide for loved ones.
- If you have under the age of 18, you can make the decisions about who will take care of them.
- Lengthy and expensive legal processes can be avoided because you will have provided certainty about your last wishes.
How you can draft a will?
You can have a basic will drafted by completing a will application form. For the application form, you will need to prepare a list of assets and liabilities, instructions on what needs to happen to with your estate and the details of beneficiaries.
If you are unsure about the will process, consult a qualified financial adviser to assist you.
The Wills Act dictates that everyone from the age of 16 can draft a will and there is no minimum asset base. Finally, it is important to have an up-to-date will so there isn’t any room for uncertainty.
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