Estate Planning

A well thought out will and comprehensive estate planning are core components of your financial planning and financial wellbeing. With a will in place, you have the peace of mind that comes from knowing that the transference of your estate will take place according to your wishes and for the maximum benefit of your loved ones.

AHA MOMENT: A will is a legal document and is the only binding record you leave behind to communicate your instructions regarding what is to happen to your assets on your death.

Your will needs to be clear and simple in expression. This does two things: it leaves your heirs in no doubt as to what is to happen and it is relatively quick to process.

Points to remember when drawing up your will include

Discuss your needs and goals with your family members first.

Appoint an executor – This person will ensure that your last wishes in your will are fulfilled. You can nominate your spouse, your adult son or daughter, your lawyer or auditor or even your bank or trust company.

Appoint a guardian – If you have minor children, or a spouse that has special needs it is of the utmost importance that you plan for their care. Your will gives you the opportunity to appoint someone to take care of your loved ones in case of your death.

Compile a list of assets and liabilities – Make a complete list of everything you own as well as all your short- and long-term debt. Your assets include fixed property, personal belongings, vehicles, life policies and savings. Your liabilities include house bonds, bank loans or unpaid taxes and other active credit accounts. Ensure that your valuations are as accurate as possible.

Appoint your heir(s) – Make provision for your heir(s) to receive the inheritance before any other bequests are paid out.  Consider friends, churches, educational- and charity organisations -You might decide to leave an amount or specific item to a loyal friend, a faithful worker, your favourite charity organisation or educational institution. Make sure that you are in possession of the person’s or institution’s correct name and address for inclusion in your testament.

Instructions regarding your burial/cremation must be set out clearly – If it is your wish to donate your organs, include this in your will, inform your family members, and doctor about your decision.

Consult your financial advisor – It is also advisable to consult your financial advisor/lawyer regarding the compilation of your will. Discussing your options with these specialist, you will be well prepared to draw up your will and conduct your estate planning effectively. However, before you meet with a specialist to discuss these matters, ensure that person is accredited to assist you and has experience in estate planning.