Why should you have a will?
We spend our lives building our estate, hoping to leave a legacy behind for our loved ones.
It's importance to make the provisions necessary to ensure that our estate is dealt with as we'd wish. This is why it's important for us to consider having a last will and testament.
What is a will and what are advantages of having one?
1. A will outlines the selection of your Heirs
A will helps to ensure that your decision of who receives your estate is final. It eliminates a potentially long drawn out, and costly procedure of probate.
2. Your will ensures that your children are looked after emotionally
If your children are under 18, you can nominate specific guardians for them and outline the details in your will, this will ensure that your children will be looked after and taken care of by those you trust.
3. Your will ensures that your children are looked after financially
If your children are under 18, the money held in your estate will be held in well-managed trusts, maintaining income and long-term benefits, for your children and avoiding the heavy costs of legal administration.
4. Keep the courts out of your estate
With regard to property distribution, a will is necessary to enable an agreement of your specified executor and to avoid additional cost and time delays.
5. Prepares you for traumatic injuries or illnesses
In the event of health deterioration, and mental or physical impairment, your will plans the designation of executors to manage your financial affairs.
6. Can provide children from previous partners
Your will can make provision for children from past marriages or relationships that may otherwise be left out of the estate distribution. It can also take into consideration those previous spouses.
7. Inheritance Tax and Death Duties
If you don't write your will, planning the full extent of limitations of your estates liability, the government will take up to 65% of your legacy (South African citizens).
8. Specific Financial Distribution
The planning aspect of your willmeans you can make specific provisions for the distribution of your wealth and assets to specific individuals.
9. Charitable Donations
If you wish to donate to a charity upon your death, you can ensure your nominated charity receives your donation.
10. Your Family Business
You can leave specific instructions about the operations of your family business in your will.
Do you have a will?
Let's connect in the comments section below.
Guest post by: Chenine Gouws, Sanlam, Financial Advisor