We have all heard the stories. Man dies, ex wife inherits everything, girlfriend of 15 years gets nothing.
Court battles have been fought, family ties have been broken, siblings have ended up never speaking to each other again and all because a loved one either died with no will or didn’t update it.
If you are living with a partner, married or divorced, or have dependants, it is crucial that your will is in order, says Mariska Comins, head of Technical Support, PSG Wealth.
In South African law, if a person dies without a will, intestate succession will determine the distribution and beneficiaries of your estate,
By drafting a will you ensure that your intended beneficiaries will inherit and you can secure the financial future of your loved ones, she says.
Aneesa Razack, ceo of FNB Fiduciary explains that a will is “a detailed plan of how you will leave your accumulated assets and belongings, big or small, to your loved ones once you pass on".
For couples - whether you are living together or married - there are various factors that need to be taken into consideration when drafting a will, says Moremadi Mabule, head of Wills Operations at Sanlam Trust.
“This includes one’s marriage regime. Being married in community of property (COP) or having a joint will have major implications on how your estate is dissolved.”
Here are a few things you need to consider with your estate plan and how you draft your will:
If you are living with a partner
Couples need to be aware of how they to manage financial matters when it comes to their individual wills.
If you are sharing your financial commitments with each other, such as paying off a home or car loan you bought together, then do have a discussion about the financial restrictions or risks that will be involved should one of you pass away.
One of the financial risks is making the payments for the car or property after the death of a partner without falling into debt.
According to Legacy Wills, if you want your your partner to be the beneficiary of your property after your death then you need to express that in your will.
If you are married
Many married couples have joint bank accounts but if the primary account holder of the joint bank account passes away, then the bank is legally required to freeze the joint bank account until the estate of the deceased person has been fully processed. This kind of situation puts financial strain on the living person.
It is important to note that this also applies to co-applicants for home or vehicle loans.
Divorced
If a couple is divorce, then the necessary changes to the will and estate planning need to be made to reflect your current wishes.
A former spouse will not be automatically removed from your will just because you divorced.
Dependants
If you have young children, it is vital that you decide who will take care of them should you and your partner pass away.
If you have chosen a guardian and included that in your will, you need to consider your relationship with the chosen guardian and that whatever you leave for your children is in good hands.
“For parents of children with serious disabilities, estate planning is critical as they may never be able to work and provide for themselves,” Mabule says.
“A thorough and well-considered estate plan - which you can do with a certified financial adviser - is an important and everlasting gift you can give your family and loved ones,” Comins adds.
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