{"id":764327,"date":"2024-04-03T08:48:30","date_gmt":"2024-04-03T06:48:30","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=764327"},"modified":"2024-04-03T08:48:36","modified_gmt":"2024-04-03T06:48:36","slug":"what-happens-to-your-home-when-you-pass-away","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/industry-news\/764327\/what-happens-to-your-home-when-you-pass-away\/","title":{"rendered":"What happens to your home when you pass away?"},"content":{"rendered":"\n<p>If you own a home of your own, have you thought about what will happen to it one day when you pass away? With as many as 70% of South Africans not having a valid <a href=\"https:\/\/www.capitallegacy.co.za\/your-will?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_campaign=April+2024\" data-type=\"link\" data-id=\"https:\/\/www.capitallegacy.co.za\/your-will?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_campaign=April+2024\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>will<\/strong><\/a>, this is a key question for thousands of homeowners in our country.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/www.capitallegacy.co.za\/?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_campaign=April+2024\" data-type=\"link\" data-id=\"https:\/\/www.capitallegacy.co.za\/?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_campaign=April+2024\" target=\"_blank\" rel=\"noreferrer noopener\">For more information on Capital Legacy, click here.<\/a><\/strong><\/li>\n<\/ul>\n\n\n\n<p>Homeownership can be a great way of securing your financial future and leaving a valuable asset for your loved ones. However, not including your property in your will, or not doing so with thought and care, could leave your heirs out of pocket and even forfeiting the place, in some circumstances.<\/p>\n\n\n\n<p>\u2018A bit of careful estate planning will enable you to avoid these pitfalls and ensure smooth transfer of the property to the intended new owner, making sure your wishes are carried out,\u2019 says Carl Coetzee, Joint MD of Capital Legacy.<\/p>\n\n\n\n<p>There are five important questions to answer as you think about what happens with your home if you pass away:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Do you have a will?<\/strong><\/h3>\n\n\n\n<p>If you are a homeowner, but you do not have a will, this should be your first step. \u2018Having a basic will drafted is quicker, easier and simpler than you might think, and it safeguards you against dying without one,\u2019 says Coetzee. This matters because if you pass away without a will, your estate will be divided according to a formula set by law (a.k.a. \u2018intestate succession\u2019) and you will have no say in it.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How are you married?<\/strong><\/h3>\n\n\n\n<p>If you are married, your marital regime could impact your rights in terms of deciding what to do with your property. Most commonly, there are two marriage regimes to consider in this context:<\/p>\n\n\n\n<p>If you are <strong>married<\/strong> <strong>in community of property<\/strong>, your spouse would own half of the property even if you leave it to a third party like a child.<\/p>\n\n\n\n<p>If you are <strong>married<\/strong> <strong>out of<\/strong> <strong>community of property with<\/strong> <strong>accrual<\/strong>, bear in mind that your spouse could have a claim against your estate for their share of the accrual. \u2018If this is a substantial claim, it might necessitate the sale of the property. This could make matters more complicated to wrap up, and could lead to unintended outcomes,\u2019 Coetzee cautions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How old are your children?<\/strong><\/h3>\n\n\n\n<p>In terms of South African law, children under the age of 18 (minors) cannot inherit directly without the assistance of their legal guardian. Having a valid will that includes provision for a <a href=\"https:\/\/www.capitallegacy.co.za\/faq\/115\/what-are-the-3-types-of-testamentary-trusts?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_campaign=April+2024\" data-type=\"link\" data-id=\"https:\/\/www.capitallegacy.co.za\/faq\/115\/what-are-the-3-types-of-testamentary-trusts?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_campaign=April+2024\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>testamentary trust<\/strong><\/a>, if your children are still minors, means the trustees would then be responsible for the property. This is widely considered a more desirable method of leaving property to children.<\/p>\n\n\n\n<p>If there is no testamentary trust, your minor\u2019s legal guardian would be responsible for the property. If, for example, your ex is the guardian and you two were involved in an acrimonious divorce, this could easily lead to your wishes not being carried out, or your child\u2019s best interests not topping the list of considerations. Another reason for ensuring that your will makes provision for a testamentary trust.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Is the property bonded?<\/strong><\/h3>\n\n\n\n<p>Ideally, you want your property to be transferred to a new owner as an \u2018unencumbered asset\u2019, which means no monies are owed on it. \u2018If there is a home loan over your property, make sure you have sufficient cover to provide for your outstanding bond repayments, should you pass away. The <strong><a href=\"https:\/\/www.capitallegacy.co.za\/article\/82\/how-to-choose-an-executor-for-the-winding-up-of-your-estate?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_campaign=April+2024\" data-type=\"link\" data-id=\"https:\/\/www.capitallegacy.co.za\/article\/82\/how-to-choose-an-executor-for-the-winding-up-of-your-estate?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_campaign=April+2024\" target=\"_blank\" rel=\"noreferrer noopener\">executor of your estate<\/a> <\/strong>will then use this cover to settle your total outstanding home loan amount before the property is transferred to your intended heir,\u2019 explains Coetzee.<\/p>\n\n\n\n<p>If there is a home loan over the property and no cover in place, your heir could decide to take over the loan instead of letting the executor sell the property. However, this may take a bit of time as they would need to meet the bank\u2019s qualifying criteria for a home loan.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Can your estate cover the costs?<\/strong><\/h3>\n\n\n\n<p>SARS does not require the payment of transfer duty when a property passes to a new owner by way of inheritance. \u2018However, that does not mean that there are no other costs involved,\u2019 Coetzee cautions.<\/p>\n\n\n\n<p>Your estate will still be liable for conveyancing costs, Deeds Office fees and municipal rates clearance certificates. If the property is part of a sectional title scheme, you will also need a levy clearance certificate, usually provided by the managing agents. An electrical certificate and an entomologist\u2019s certificate (dealing with wood borer and termites) do not form part of a deceased estate property transfer.<\/p>\n\n\n\n<p>\u2018Without these required documents, the transfer will not be completed, so make sure there are sufficient funds available in your estate, so that the necessary certificates can be obtained and delays avoided,\u2019 advises Coetzee.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What not to do<\/strong><\/h3>\n\n\n\n<p>Two top tips when leaving a home to your loved ones:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Do not describe the address of the property in your will. You could, for example, simply refer to your \u2018residential property\u2019 when your will is drafted. Then it would not matter whether you might have moved house and forgotten to update your will to reflect the new address. Nor would it cause the bequest of the property to lapse if the place is sold and your will not updated accordingly.<\/li>\n\n\n\n<li>Do not neglect to discuss your plans and wishes with your loved ones. These conversations may be difficult, but they are important, so do not put them off indefinitely. Sharing your wishes with those involved while you are still alive, could ease their burden at a time of grief and loss.<\/li>\n<\/ul>\n\n\n\n<p>\u2018Deciding what to do with your home matters on a number of levels: financial, logistical and emotional. That\u2019s why you should think carefully about what you\u2019d like to do with it, and make sure you update your will regularly to reflect your latest circumstances,\u2019 Coetzee concludes.<\/p>\n\n\n\n<p>For professional advice on estate planning and to draft your will, securing your legacy and your family\u2019s financial future<em>, <\/em>contact <a href=\"https:\/\/www.capitallegacy.co.za\/?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_campaign=April+2024\" data-type=\"link\" data-id=\"https:\/\/www.capitallegacy.co.za\/?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_campaign=April+2024\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Capital Legacy<\/strong><\/a> today or speak to your financial advisor.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/03\/Carl-Coetzee.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/03\/Carl-Coetzee-1024x683.jpg\" alt=\"\" class=\"wp-image-764367\" style=\"width:1200px\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/03\/Carl-Coetzee-1024x683.jpg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/03\/Carl-Coetzee-300x200.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/03\/Carl-Coetzee-768x512.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/03\/Carl-Coetzee-1536x1024.jpg 1536w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/03\/Carl-Coetzee-2048x1366.jpg 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure><\/div>","protected":false},"excerpt":{"rendered":"<p>Follow the guidance of Capital Legacy to ensure your property is left to your loved ones if you pass away.<\/p>\n","protected":false},"author":57,"featured_media":764363,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10459],"tags":[14063],"class_list":["post-764327","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","tag-capital-legacy"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/764327","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=764327"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/764327\/revisions"}],"predecessor-version":[{"id":764373,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/764327\/revisions\/764373"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/764363"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=764327"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=764327"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=764327"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}