By Tracy Muller, Head of Fiduciary

With South Africa well into its third wave of Covid-19 infections and a fourth wave looming, the constant presence of death serves as a reminder as to how quickly things can change, and sadly, how quickly life can be taken away. According to Stats SA, the significant rise in deaths in 2021 (approximately 34%), meant a drop in the 2021 life expectancy at birth for South Africa. Life expectancy at birth for males declined from 62,4 in 2020 to 59,3 in 2021 (3,1-year drop) and from 68,4 in 2020 to 64,6 for females (3,8-year drop). 

Arguably therefore the most important document we all need to have is a will that reflects our current wishes as this will become our voice when we no longer have one. Ironically, however, this is also often the most neglected document. Having a valid will can save your loved ones from added heartache and frustration when you pass away. 

Preparing for unpredictable events by ensuring you have a valid will has always been important, and it has become especially critical during these unprecedented times. Having a valid, up-to-date will ensures your wishes are clear and that the right people benefit from your money and assets.

The Master of the High Court estimates that over 70% of South Africa’s working population do not have wills. If you pass away without a valid will, your wishes may be ignored, resulting in your loved ones not receiving the money and assets they are entitled to. In addition, it can also lead to serious and unnecessary delays in the administration of your estate, resulting in financial and emotional stress for your family and dependents. 

If an individual dies without leaving a valid will, their estate will be administered according to the Intestate Succession Act, 81 of 1987. As an example, married couples often assume that the surviving spouse will inherit the estate if the first-dying spouse dies without a will. This is correct if the couple had no children. But if the deceased had children, the rules of intestate succession say that the spouse inherits the larger of R250 000 or a child’s share of the estate, and the children inherit the rest. A child’s share is determined by dividing the monetary value of the estate by the number of children plus one. The spouse will therefore inherit only a portion of the estate, and the spouse and the children will become co-owners of the assets, which is often impractical. 

Connecting every aspect of your financial life to your wishes for loved ones should, ideally, begin as early as possible. But it is never too late to secure your loved one’s future. A key component of comprehensive financial planning and wealth advice is estate planning. At its core, estate planning is about protecting your own and your loved ones’ interests. Since everyone’s circumstances, family set-ups and needs are different, your estate and succession plan will be different from someone else’s. That is why it is important to get personal advice on your specific situation. Please click through to our guide on estate planning.

For a will to be considered valid, it must be signed in the presence of two competent witnesses. The witnesses must be 14 or older and competent to testify in court. A person who signs the will as a witness, or who writes any part of the will, as well as the spouse of that person at that time, will be disqualified from receiving any benefit from the will. Any change to the will must be signed by the testator and the witnesses too.  

Want to know more? Here's what to do:

• Contact your wealth manager.
• To find out more about our fiduciary offering, click here.
• If you're interested in what we can offer you, we would love to hear from you. You can contact us on 0860 111 263, or complete an online contact form.