Death is not a pleasant topic, but neglecting to get your affairs in order can leave your loved ones dealing with more than bereavement.
If you die intestate, without leaving a valid will, your assets will be divided as provided for in the laws of succession. Only your family qualifies as heirs in terms of the laws of succession, however, they may not inherit in the proportions that you had in mind. Winding up of your estate will also take longer and your loved ones will pay more estate duty than would have been the case if you'd had a valid will.
What makes a will valid?
You must be older than 16 years and be of sound mind when drafting your will. You must sign every page in the presence of two competent witnesses, who are not beneficiaries in terms of the will. The witnesses must also sign every page. It is preferable that your will be drafted and typed by a professional. Handwritten wills or a will typed by you is not invalid but may lead to misunderstandings and even malpractices. The will must also be dated at the end thereof. If you are at all uncertain about the drafting of your will consult a attorney, accountant or trust company. It costs a few hundred rand but is worth the expense.
What must be written in your will?
Clear instructions about the division of your assets after your death should be contained in your will. You also have to appoint an executor who will handle your estate after your death. The executor ensures that your debts are paid and your estate distributed to your beneficiaries in accordance with your wishes. An executor must preferably be someone with the knowledge, expertise and time to take on the responsibility. Should you appoint someone who, in the opinion of the Master of the High Court, does not possess sufficient knowledge and expertise, the Master will insist on the appointment of an agent to attend to the administration of the estate. The executor is entitled to 3,5% of the value of the estate plus VAT, as remuneration. If you have minor children a guardian must also be appointed in your will.
Remember
Before drafting a will, make a list of your assets, ensuring that everything has been included in your will.
Your heirs must pay 20% estate duty on assets above the first R 2,5 million rand of your estate. No estate duty is payable on assets bequeathed to your spouse. A spouse also includes someone with whom you have had a long-term relationship, even though you were never married.
Any special arrangements regarding your funeral should be conveyed to your loved ones during your lifetime. Will are normally only read after your funeral and is it therefore important that your loved ones are aware of your wishes.
Preferably do not leave assets such as a single house to several people as it leads to squabbling.
If you have minor children or other dependants it is advisable that you create a testamentary trust to provide for them. The trust safeguards your assets until your children reach majority or a predetermined age. The trust only becomes effective after your death.
Another kind of trust is a living or inter vivos trust, which is created while you are alive. You can appoint the trustees, including yourself, to manage the assets of the trust. An inter vivos trust should be considered if your assets exceed R 2,5 million. This can save on estate duty.
If you die intestate, without leaving a valid will, your assets will be divided as provided for in the laws of succession. Only your family qualifies as heirs in terms of the laws of succession, however, they may not inherit in the proportions that you had in mind. Winding up of your estate will also take longer and your loved ones will pay more estate duty than would have been the case if you'd had a valid will.
What makes a will valid?
You must be older than 16 years and be of sound mind when drafting your will. You must sign every page in the presence of two competent witnesses, who are not beneficiaries in terms of the will. The witnesses must also sign every page. It is preferable that your will be drafted and typed by a professional. Handwritten wills or a will typed by you is not invalid but may lead to misunderstandings and even malpractices. The will must also be dated at the end thereof. If you are at all uncertain about the drafting of your will consult a attorney, accountant or trust company. It costs a few hundred rand but is worth the expense.
What must be written in your will?
Clear instructions about the division of your assets after your death should be contained in your will. You also have to appoint an executor who will handle your estate after your death. The executor ensures that your debts are paid and your estate distributed to your beneficiaries in accordance with your wishes. An executor must preferably be someone with the knowledge, expertise and time to take on the responsibility. Should you appoint someone who, in the opinion of the Master of the High Court, does not possess sufficient knowledge and expertise, the Master will insist on the appointment of an agent to attend to the administration of the estate. The executor is entitled to 3,5% of the value of the estate plus VAT, as remuneration. If you have minor children a guardian must also be appointed in your will.
Remember
Before drafting a will, make a list of your assets, ensuring that everything has been included in your will.
Your heirs must pay 20% estate duty on assets above the first R 2,5 million rand of your estate. No estate duty is payable on assets bequeathed to your spouse. A spouse also includes someone with whom you have had a long-term relationship, even though you were never married.
Any special arrangements regarding your funeral should be conveyed to your loved ones during your lifetime. Will are normally only read after your funeral and is it therefore important that your loved ones are aware of your wishes.
Preferably do not leave assets such as a single house to several people as it leads to squabbling.
If you have minor children or other dependants it is advisable that you create a testamentary trust to provide for them. The trust safeguards your assets until your children reach majority or a predetermined age. The trust only becomes effective after your death.
Another kind of trust is a living or inter vivos trust, which is created while you are alive. You can appoint the trustees, including yourself, to manage the assets of the trust. An inter vivos trust should be considered if your assets exceed R 2,5 million. This can save on estate duty.
Please contact us on 0861 10 12 20 to assist with your will.
No comments:
Post a Comment
Thank you for your comment. We will respond to you as soon as possible.