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.
According to Comins, if a person dies without a will, the South African law of intestate succession will make a decision about the distribution and beneficiaries of said person’s assets.
When one partner in a relationship passes away, there needs to be a clear outline of their wishes in their will so they can protect their loved ones.
Drafting a will and then updating it when you have life changes, such as divorce, is important.
The outcome of which could be completely different from what a person would have chosen when they were alive.
Drafting a will ensures that people can secure the financial future of their loved ones and that their intended beneficiaries will inherit exactly what they want them to inherit.
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.
Mabule said: "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 should 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 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 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 divorcing, 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 whether 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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