Jeffrey Wiseman, Head of Momentum Trust
The two things in life that are inevitable are death and taxes. The topic of death is always difficult to discuss but it remains a reality for every single one of us. The question is are you doing everything you can to not only leave behind good memories but also a stable financial future for your loved ones.
According to Jeffrey Wiseman, Head of Momentum Trust, a legally valid will is not enough. It is crucial that a will is backed up by a financial plan in order for the wishes contained therein to be executable. For many years the Law Society of South Africa has run its annual National Wills Week in September, and we believe that there’s no better time to reflect on the importance of having a legally binding and executable will.
He says a will is the starting point in planning your legacy. In addition to instructing the executor of your estate on how to distribute your assets, it is also able to provide direction on matters such as guardianship of minor children and instructions on funeral arrangements. “If you die without a will, or if your will is not executable, your estate may face unexpected complications, which could result in your loved ones experiencing financial and emptional distress,” says Wiseman.
He explains that many South Africans neglect this important step, leaving their families vulnerable to the complexities of intestate succession laws. Without a will, your estate is distributed according to a rigid formula, which may not reflect your personal wishes.
The role of an executor – why a competent and qualified party matters
Choosing the right executor is another critical step. “An executor is responsible for carrying out the instructions of your will, ensuring your assets are distributed as you intended. While it might seem like a good idea to appoint a family member or close friend, this is often not a good idea. Being an executor requires financial and legal expertise. This responsibility can be overwhelming for someone without the necessary experience. This is why it’s often better to choose a professional executor who understands the intricacies of estate law and can handle the administration smoothly,”
Preparing for unexpected costs
One of the most overlooked aspects of estate planning is the costs involved in wrapping up an estate. From legal fees to executor fees and taxes, these expenses can add up quickly, and if your estate does not have the necessary liquidity, your beneficiaries may be forced to sell assets to cover these costs.
Wiseman stresses the importance of planning for these expenses to avoid putting undue financial pressure on your family. “A well-drafted will should include provisions to ensure your estate has enough liquidity to cover all the costs involved. This way, your loved ones aren’t left with unexpected bills during an already challenging time.”
The role of an adviser
Wills Week is the ideal opportunity to take action. By consulting a trusted adviser such as your financial planner, you can prepare for the unexpected and make well-informed decisions. “An adviser can guide you on how to ensure your will and estate are properly set up, and that your estate is left with sufficient funds to liabilities settle liabilities and the costs associated with administering your estate,” says Wiseman.
South Africans often face challenges when it comes to the signing, and placing into safe custody, of their wills due to the legal formalities associated with the process and the requirement for original documentation. Wiseman believes that combining access to high quality wills through Momentum’s extensive adviser network with PostNet’s national branch footprint will make the signing and placing into safe custody of wills accessible and convenient.
“Make sure your legacy is one of care and responsibility – not one that leaves your family in distress, Wiseman concludes.
ENDS
