What to consider when writing a will in South Africa

While a will is essential for South Africans, its effectiveness hinges on ensuring that it forms part of a comprehensive estate plan.

“This broader estate planning strategy not only ensures your assets are distributed the way you want them to be, but it also addresses crucial aspects often overlooked in basic will preparation,” said Graham Mcpherson, Executive for Nedgroup Trust.

“Combining a well-crafted will with thorough estate planning is the perfect way to create a clear and robust framework for smooth wealth transfer – sparing your loved ones from potential financial and legal complications during an already difficult time.”

There are several compelling reasons to go beyond just creating a will and investing time and effort into establishing a comprehensive estate plan.

A key advantage of a good estate plan is that it helps you set up your assets correctly while you are still alive.

This includes the best form of ownership for all those assets, which can be held by yourself, jointly with others or in trusts.

“This way, you create an uncomplicated pathway for those assets to transfer to your beneficiaries,” said Mcpherson.

“Without this level of detail and planning, even a professionally drafted will can be difficult to execute, may create unintended consequences, or may face legal challenges from those who feel they have been ‘short-changed,’ which can make the whole process of winding up your estate difficult for everyone involved.”

Effective estate planning also means that a will matches your current life situation.

Life events like getting married, divorced or having children, or even starting or growing a business can change how one wants to share one’s wealth.

For those who don’t update their will after these events, it can lead to confusion and arguments among heirs.

Regular reviews of one’s estate plan and using it to update their will makes sure that their instructions match their current financial situation, which reduces the risk of delays in distributing one’s assets.

“A vital, but often forgotten, part of estate planning is making allowance for immediate expenses after your passing. Apart from ongoing day-to-day living expenses, your loved ones will face funeral costs, short-term debts and maybe even taxes while your estate is being processed,” said Mcpherson.

“If you don’t plan for these in advance, your family may struggle to cope financially or be forced to sell assets just to survive.”

“A well-planned estate anticipates these expenses by making sure there’s enough accessible money – either through cash savings, life insurance or an emergency fund – to prevent financial hardship and support your loved ones when they need it most.”

Keeping good records and staying organised are also crucial to ensuring the effective execution of one’s estate plan.

A carefully constructed plan can be difficult to execute as intended if important documents required for its execution, such as bank accounts, certificates of ownership, insurance policies, details of digital assets, or even the original will itself, cannot be found.

Getting advice from professionals and qualified experts is also essential, such as financial advisors, estate planners, fiduciary experts and trust specialists have the knowledge to ensure your will and estate plan are comprehensive and legally sound.

“Also, appointing a professional and independent executor can provide a neutral perspective and ensure legal processes are followed correctly, preventing delays and disputes. It also may remove the need for additional security being provided,” said Mcpherson.

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