“A society grows great when old men plant trees whose shade they know they shall never sit in.” - ANON

More than 70% of South Africans don’t have a valid will. The reason for this, we believe, is because people are not educated on why wills are so important and how you can use them to protect your family and save tax. 

By drafting a will, you are planting a tree in which shade your family can sit. Let me explain… 

Why do you need a will?

If you have money in the bank, or any assets, you should have a will. There is a common misconception that people believe they don’t have enough assets to justify drafting a will. The fact is, if you have any assets that you wish to leave to someone specific, you need to draft a will. 

• Having a will can help you achieve the following: 
• Ensure your wishes are carried out and money / assets are left to the people you care about,
• Legally appoint guardians for your minor children in the event of your passing (this can only be done in a will)
• Ensure your family is not burdened with admin in a time of grieving
• Ensure your estate is wrapped up as quick as possible by someone you entrusted with the job (your executor) and your assets are distributed as quick as possible

Why do you need to protect your estate and how do you do it? 

Of the approximately 20% of people who have a valid will, very few of them are aware of the costs involved in winding up their estate. When they do the calculation to see what these costs are, they are always shocked. 

So how does this work? When your executor winds up your estate, there are executor fees, Master’s fees, estate duties, income tax, capital gains tax and possible conveyancing fees at play. There needs to be enough cash in your estate to cover these costs, otherwise your assets will be sold to pay these fees. You can see how the house you wanted to leave to your family suddenly gets sold to pay these expenses - not what you had in mind. In order to prevent this from happening you need to ensure there is enough cash in your estate upon your passing.  

Since starting to read this blog, has your opinion on the importance of having a will changed? I surely hope it has.