This may be one subject we try and avoid as it is not something anyone wants to think about. We all want to live longer but the reality is that at some stage we will die, we just never know when. This is why you need to ensure you have a proper Last Will and Testament that is properly drafted and signed.
If you do not have a Last Will and Testament at your death you will die intestate. The Intestate Succession Act 81 of 1987 sets out the provision for how a deceased person’s intestate estate is to be distributed. So NO it does not go to the government. If you have a spouse, he or she will be first in line to inherit. However if you have children your assets will be split between your spouse and children subject to specific conditions.
A Last Will and Testament is a written document that at your death insures your estate is distributed as determined by you. With a valid Will you can choose your heirs. You are able to choose the Executor who will be responsible for the smooth and efficient administration and transfer of the assets at your death. You are also able to negotiate the Executor’s fees upfront.
In order to reduce costs, taxes and fees you could consider paying a financial planner to prepare an Estate Planning Report. This could help to ensure that your Will is drafted correctly. It will also inform you if your estate will have enough cash to cover these costs. You may not want the Master of the High Court to instruct the Executor to sell assets to generate cash.
You are able to nominate the guardians of your children.
One important factor is that you can set-up Testamentary Trust for the care of your beneficiaries. This is very useful when your beneficiaries are minors or have a disability. Should there be no provision made for beneficiaries who are minors their inheritance will the paid to the Government’s Guardian Fund. You are able to appoint the Trustees who will manage the assets in the Testamentary Trust on behalf of the beneficiaries.
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