Top ten reasons to update your will before you go on holiday
Published |
|
2011
Thu
15
Dec
|
By Tanya Cohen, Head of Fiduciary at Glacier by Sanlam
Your will dictates (to your executor(s)) the manner in which your assets should be divided and your dependants looked after when you are no longer around. It is therefore probably the most important contract you conclude in your lifetime. Therefore, care should be taken to ensure that your will reflects your current true intentions.
Recent research done by Glacier Fiduciary Services revealed that, while 98% of respondents had a will, only 33% overall said their will was updated in the last year.
Not updating one’s will regularly can lead to unintended consequences, not to mention the unnecessary hardship for surviving family members during an already difficult time. The top ten most important reasons to update one’s will regularly are outlined below.
- Ensure that your estate gets divided according to your true current intentions
If you are divorced and you do not amend your will to exclude your ex-spouse for more than three months after your divorce, an assumption is made that you intend your ex-spouse to inherit. This may well not be your intention.
- Spare your grieving loved ones the inconvenience of being embroiled in a court case
Any inconsistencies or inaccuracies in your will could lead to expectant heirs airing their grievances in court. A clear and well drafted will that provides for the efficient administration of your estate, will go a long way to help those left behind to stay out of litigious disputes.
- Ensure that all your children are included in the will
If children and grandchildren are named individually in a will, it may happen that subsequent children, born after the will was drawn up originally, are excluded if the will is not updated.
- Ensure that recently passed legislation has been taken into account in your will
Recently passed legislation may affect one’s will, for example the Children’s Act 38 of 2005, which reduced the age of majority from 21 to 18. Any bequest to a testamentary trust with the wording “until majority” will therefore imply that the trust will terminate when the child reaches age 18, rather than 21, and he/she will inherit the trust capital. This may well not be what you desire.
- Any changes in one’s relationship with an heir should be reflected in your will
If your relationship with an heir has changed, or become strained, it may lead to a change in your intentions about that heir’s share of the inheritance.
- Ensure that the acquisition or disposal of significant assets is reflected in the will
The acquisition or disposal of a significant asset will affect the value of one’s estate, and possibly the way assets are divided. It is therefore important to ensure that any such changes are taken into account in the provisions of your will.
- Ensure that your will reflects any charitable intentions you may have
Recent dealings with a charitable organisation may have led to a decision to provide for that organisation in one’s will.
- Avoid the division of your assets according to the intestacy rules
A non-existent, unsigned or incorrectly signed will can cause practical problems or, more significantly – the division of your assets according to the intestacy rules. The intestacy rules have the following effect:
· The inheritance of minor children has to be paid into the Guardian’s Fund. If a valid will is in place, provision can be made for setting up a testamentary trust for the benefit of minor beneficiaries.
· Without a valid will, no guardian would be appointed for minor children, and the family and Social Services are empowered to nominate a person for appointment.
· The Master of the High Court will appoint an executor – not of your choice, which in itself will cause delays in the winding up period.
· Where there are no descendants, your entire estate will pass to your surviving spouse, to the exclusion of any other family members such as your siblings or nieces and nephews.
· If there are no intestate heirs (living family members) the entire estate may be forfeited to the state after 30 years, after being advertised in the Government Gazette annually for that period of time.
· It is important to note that the law of intestate succession does not cater for common law / life partners as “spouses”.
- Avoid a delay in winding up the estate
- Avoid the considerable cost and time involved for your loved ones in launching a court case.
If one compares the effort involved in updating one’s will regularly and complying with the Wills Act formalities to the substantial cost and time involved in litigation proceedings, it is clear that updating one’s will regularly with the help of a properly qualified and experienced person is the most sensible course of action.
Source: Glacier Financial Solutions (Pty) Ltd, A member of the Sanlam Group
Breaking News »
|
