Five questions to ask when creating a will for lasting certainty

Johannesburg - According to Akhona Matshoba, communications specialist at Allan Gray, a will is an enduring expression of care.

“Not only does a will determine the conditions under which the people you care about can benefit from your estate, it also appoints critical roles – such as guardians for minor children and someone you trust to administer your estate according to your wishes,” says Matshoba.

She says a will is more than a legal document, and estate planning is not a once-off exercise – both need to be revisited regularly. Below she provides five questions for investors to consider regarding their will and estate planning.

Question #1: Is your will valid?

“An invalid will strips you of the power to choose who you would like to inherit your assets and how, and subjects your estate to the rules of intestate succession. This means that your estate will be divided according to a set formula and may not align with your wishes.”

Additionally, the process of winding up an estate will likely take longer to complete, possibly leaving dependants without support.

She says that for a will to be valid, three conditions must be met.

“Your will must be signed by you in the presence of two witnesses older than 14; exclude witnesses – or their spouses – as beneficiaries, executors, guardians or trustees; and be in writing – whether handwritten or typed.” She adds that if another person writes the will on your behalf, they – or their spouse – cannot be listed as beneficiaries of your estate, guardian of your minor children, or trustee of a testamentary trust. 

Question #2: Does your will appoint a suitable executor?

Matshoba says that while it is natural to appoint a trusted family member, close friend or a spouse as an executor, consider whether that person will have the emotional, mental and practical capacity to administer your affairs when the time comes.

“Serving as an executor requires attention to legal, administrative and financial matters. Choosing someone with the ability and willingness to carry out these duties helps ensure your wishes are implemented appropriately,” she says.

Question #3: Does your will provide immediate liquidity for loved ones?

It can take months, and sometimes years, to administer an estate. During this period, beneficiaries may need access to funds. Consider how some of your assets can provide financial support in the interim.

“For example, the death benefit of a life policy investment can generally be paid directly to beneficiaries once the death claim process has been finalised,” says Matshoba. “Restrictions may apply for some products, so it is worthwhile seeking professional estate-planning advice to determine which of your investments can best provide for your loved ones while the estate administration process runs its course.”

Question #4: Are you familiar with the rules that govern your investments and impact estate planning?

Matshoba explains that some investment products, such as unit trusts, form part of your estate. Others are structured as life policies and allow you to appoint beneficiaries who will receive the proceeds directly on your death, without having to wait for your estate to be wound up. The Allan Gray Tax-Free Investment, Endowment and Living Annuity are good examples of this; retirement products work differently.

“While you can and should nominate beneficiaries for your retirement funds, these nominations serve only as a guide for the trustees, who are required to identify and consider individuals who are financially dependent on you before allocating the benefit fairly,” she explains.

“To help trustees understand your wishes and identify potential beneficiaries, keep your list of nominees up to date. You may also provide a letter of wishes to give more context to your desired outcome.”

Question #5: Does your will reflect your current financial position?

As a foundational part of your financial planning, your will should change as your assets, circumstances, and beneficiary and/or dependants’ needs change.

“Take this time to review your will to ensure it remains valid, up to date and aligned with your intentions. This can reduce uncertainty for your loved ones and help ensure your wishes are carried out as planned,” concludes Matshoba.

During National Wills Week, many qualified legal practitioners provide will drafting services for free. Visit the Law Society of South Africa’s website to find participating attorneys who can help you get started.