Complicated life = complicated Will

Last updated on 13th December, 2017 at 10:06 am

It’s not a topic many people want to discuss, but a Will is one of the most important documents in your life – and even more so for your family. Here are five areas that need particular attention when drafting a Will.

Appointing guardians

If you have children under the age of 18, it is essential to appoint guardians to look after them until they reach adult status. If you don’t specify the guardians in your Will (and there is no surviving spouse to look after your children), the courts will appoint guardians if your children are under 18. The risk here is that the guardians appointed by the courts might not necessarily be the people you had in mind. When appointing guardians, ensure they are people your children know well. Consult the intended persons before you name them in your Will to make sure they are willing to serve as your children’s guardians. It’s also a good idea to appoint alternate guardians, should the nominated people pass away.

Disabled dependants

If you have a spouse or children with special needs who cannot take care of themselves, it’s wise to appoint trustees to manage the dependants’ inheritance on their behalf. Bear in mind that trustees have a lot of responsibility – there are a number of administrative tasks they have to perform, and they have to make important decisions, such as investment choices. Therefore, make sure the appointed trustee is willing to take on the task and that it’s someone who is impartial and whom you trust completely. It’s a plus if the person has some financial experience.

Organ donation

If you want to donate your organs, first make sure you have been registered with the Organ Donor Foundation (0800 22 66 11) and verify that your details are on their database (www.odf.org.za). Explicitly say in your Will that you’re a registered organ donor, but also notify your next of kin so that they can make the necessary arrangements with a hospital at the time of your death.

Owning offshore assets

Whether you have overseas investments, money in a foreign bank account or own property in another country, it’s best to have a Will for each country where your foreign assets are held. Make sure each Will specifies that it relates to the assets of the country in which the Will has been drafted. Having separate Wills for each country where you have assets ensures that the Wills comply with the different countries’ legislations and regulations.

When estate duty is payable

Estate duty is calculated at 20% of your total estate. You will receive an exemption on the first R3.5-million of your estate, and anything that is left to a spouse or a public benefit organisation will also be exempted from estate duty. Since 2010 legislation has allowed for the portion of the exempted amount of the first spouse that was not utilised to be carried forward to the estate of the surviving spouse. By Liesl Peyper Find out more about setting up a Will with Sanlam – click here.