Please do not Die…INTESTATE
It is estimated that more than 50% of deaths in the South African population occur without leaving a will, or with an out dated will, or with a will that is altogether invalid.
When someone dies without leaving a valid will he/she dies intestate and the estate is administered in terms of the Intestate Succession Act 81 of 1987 (the Act).
This does not necessarily mean that your assets go to the state, but the Master of the High Court does take control of your deceased estate and your assets are distributed according to a fixed formula. One of the biggest disadvantages of this happening is that it could take years for your estate to be settled and distributions made to your next of kin. Furthermore, the state appoints an executor and the executor’s fee payable to the person administering your estate cannot be negotiated, which in most instances results in a more expensive transaction than is the norm.
In terms of the Act your next of kin inherit the assets in your estate.
To avoid the problems associated with dying intestate we recommend that you review your will regularly, especially when:
- your personal circumstances change;
- you acquire new assets;
- your assets increase in value beyond expectation; or
- you receive a bequest.
We recommend that you approach a body or an individual that has the necessary knowledge and experience of drafting wills, to discuss your specific circumstances and draft a will that gives proper effect to your wishes and is also practicable. We realise that death is unavoidable, but a will can make a big difference in the lives of your next of kin.
If you do not already have an estate adviser we should like to assist you to draft a will or to revise your existing will.
Will Services
The most common estate planning document is a will (also referred to as a Last Will and Testament). A will lets you direct how your assets should be administered, to whom—and under what circumstances—your assets should be distributed, and who should manage your assets after your death.
It is essential that each person has a will drafted by a specialist. We can assist with the drafting of the most complicated wills.
The following can be reasons why you should revise your current will:
- You have minor children or a newborn
- You live with your partner but you are not married
- You are getting married or divorced
- A beneficiary named in your will has died
- Changes in your estate, e.g. new assets
YOUR WILL NEEDS TO BE IN YOUR TOP DRAWER
Remember the days when you had your ‘Last Will and Testament’ drawn up for free by a Life Insurance Company just after the birth of your first son/daughter? In an ecstatic state of caring emotion you phoned a broker and bought a hugely expensive policy…………..
But alas, life goes on…… you started your own business, secured a loan and ceded your policy, had more kids, got divorced, sold the business to pay maintenance, your daughter married her ghuru, your son shacked up with your ex-wife’s best friend and you are now a partner in the company that fired you when you started your own business 30 years ago…….. but your original pro-forma Will is still packed away in a box which you haven’t opened since that awful day when you moved out of the original family home.
Your circumstances have changed a lot in the past 30 years and so should your Will.
At DRD Consulting we do not offer a ‘free’ Will. We consult with you, the client, and then advise you on the latest legislation affecting your eventual ‘Deceased Estate’, because it is a fact…. Nobody lives forever!
A Will is not a dusty, morbid document. It shows the testator to be an individual with vision and proper business sense.
Keep your Will in your top drawer and change it as your circumstances change. The costs are negligible if you consider that executors’ costs can, by law, shrink your estate by 3.99%, plus 6% + VAT on income accrued, not to mention Capital Gains Tax.
PS: Chances are very good that the original insurance company was nominated as the executor of your Estate.
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