Your last
will and testament
There are certain things you can do to get your affairs in order, to make it easier for your loved ones when you pass away. It’s a way of taking care of the people you leave behind and taking control of what happens to your possessions. This includes your home, vehicle, money, shares, land, and so on (assets) and anything you owe (liabilities) at the date of your death. This is known as your estate.
One of these things is to draw up a last will and testament, or simply known as a will.
What is a will?
A will expresses your wishes when you pass away.
It is a record of how you want your estate to be distributed and who you want to take care of your children under the age of 18 (minor children).
Who can leave a will?
Any person who is 16 years and older can draft a will to say what should happen to their estate when they pass away.
• The name(s) of the guardian(s) for your children under the age of 18 (minor children).
• The name(s) of people, charities or organisations, they are called the nominated beneficiaries, who will inherit your assets.
• The name of the executor, who will carry out the instructions of your will regarding the distribution of assets to your nominated beneficiaries.
• Instructions on how and when your nominated beneficiaries will receive their assets.
• It must be in writing, preferably typed up on a computer and printed out.
• You must sign and date it. The last will according to its date is the one that will be valid.
• Two or more witnesses over the age of 16 years, who must be present at the same time, must also sign the will. These witnesses may not be beneficiaries who will inherit from you.
0 The witnesses must not appear in the will in any way, nor may the spouses of any person appearing in the will sign as a witness.
0 The person whose will it is, and the witnesses must sign the will in each other’s presence.
What happens if you don’t have a will
and you pass away? What your will should specify Your will must be valid
If you don’t have a will, the rules of the Intestate Succession Act will apply to the distribution of your estate. Your assets will be divided among your surviving spouse(s), children, parents or siblings according to a set formula, which means:
Your will should include: In South Africa, there are three requirements for a will to be valid:
• The Master of the High Court will appoint a person who will distribute your assets. This person is called an executor.
• The Master of the High Court will appoint a legal guardian for your minor children.
• Your family might have to cover estate fees or cash shortfalls.
• Your beneficiaries’ inheritance won’t be protected.
• It will take much longer for your family to access any of your assets.
• Minor beneficiaries’ inheritance will be paid to government’s Guardians Fund.
85% of South Africans
don’t have a will
• You can make provision for a trust so that the interests of minor children or other nominated beneficiaries are taken care of.
• You can provide for maintenance of your children or spouse(s).
• Your beneficiaries will save on estate duty (tax).
• Your assets will be distributed according to your wishes.
• There could be family tension or even legal battles.
• Your family may have to handle the estate administration, which might take longer to finalise.
• You will have no control over the appointed executor.
• Intestate succession laws will apply.
How a valid will can help your family How your family could be affected
if your will is not valid
4 important things to know
when drafting your will How to draft a will
1. The wording of a will is very important. Write it in such a way that your wishes can only be interpreted in one way.
2. Your marriage contract affects the way you need to draw up your will. For example, if you are married out of community of property with accrual and you buy a house in your name, your spouse has a legal right to claim half of your estate under the accrual system. So, if you leave the house to someone else, you must understand that it is only half the value of the house you’re leaving to the other person.
3. Your will can help settle any debt you may have, and cover the tax and cost for distributing your estate.
4. You need to make a provision in your estate for cash that will cover the fees.
These include:
• Executor fees – prescribed fees paid to the executor to administer your estate based on its value.
• Conveyancing attorney fees – if there is fixed property owned by the estate.
• Trustee fees – if your will creates a testamentary trust, an administration fee is paid to the trustee(s).
• Property valuation fees – if any property in your estate is subject to a sworn market value assessment.
To get a will in place, you can either ask someone like a financial adviser or lawyer to draft a will for you or you can do it yourself.
• Contact a financial adviser
A financial adviser can tell you what information and documents you need to draw up a will. Among other things, the financial adviser will ask you for a list of all your assets and debts. Once you have everything ready, the financial adviser will draft your will for you. If you are satisfied with the contents, you and two witnesses must sign and date it, and then you will have a valid will.
• Draw up your own will online
If you have all the correct documents available, you can draft up an online will for free. You can do it on the Momentum website at momentum.co.za, which will give you a professionally drafted will that is legally valid and binding in South Africa. Once you are satisfied with the contents of the will, you and two witnesses must sign and date it, and then you will have a valid will.
Momentum Health Solutions
Smart Life file
Remember: It is important to talk to a financial adviser or legal professional and make sure you update your personal file regularly.
Keep your documents in order
Put together a ‘Smart Life file’ which you can download from the Momentum website by clicking here and keep it in a safe place or with someone you trust, or with a lawyer. You can use this checklist to make sure your file contains all the necessary documents and information that can be referred to in an emergency or if you pass away.
• The name and contact details of your financial adviser who needs to be notified when you pass away.
• A copy of your will.
• A copy of your living will if you have one, communicating your desire not to be kept on life support.
• Unabridged birth certificates for each member of the family.
• Your ID book or card and driver’s licence.
• Your marriage certificate(s).
• Your marriage contract(s).
• Copies of any divorce and maintenance agreements.
• If you are widowed, a certified copy of your late spouse’s death certificate and details of the executor who took care of your spouse’s estate.
• The most recent tax assessment for yourself and your spouse.
• Passwords or pins, use an app for storing pin numbers and passwords in a secure online vault that you can access via any computer with a master password.
• Banking details – cheque, savings, investment, credit card, vehicle finance, and home loan accounts.
• A bank statement.
• Your current employer’s details and your employee number.
• A complete list of your insurance, pension funds, trusts and investments.
• Copies of insurance and funeral policies with contact details to reach the insurance company.
• Copies of rental agreements.
• Copies of home and car insurance policies .
• Medical aid and gap cover policies.
• Copies of the latest municipal documents.
• Firearm details and licences.
• Car ownership documentation.
• Title deed of your property or properties.
• Relevant documents if you own a business or shares in a company, such as partnership agreements.
• A document explaining your desired funeral arrangements.
Life events that keep your will alive
It is important that you update your will whenever there is a life-changing event that affects your circumstances. Life-changing events could include any of these:
• The addition of a new family member, including the birth or adoption of a child
• A change in your marital status – getting married or divorced
• The death of a family member or beneficiary
• Starting your working career or starting a business
• A change in your assets, like when you buy a home
• Dependency of family members, especially those with special needs
By logging in on momentum.co.za and clicking on View details in the Life Insurance or Investment and Savings sections of the website, you can easily:
The FundsAtWork member website helps you take control and care for your loved ones.
• Nominate and update your beneficiaries.
• Get your benefit statement.
• Update your contact details, and more.
Disclaimer
Copyright reserved © Momentum Metropolitan 2021 – Momentum Corporate is a part of Momentum Metropolitan Life Limited (registration number 1904/002186/06), a wholly owned subsidiary of Momentum Metropolitan Holdings Limited. The document is for illustrative purposes only and does not constitute tax, legal, accounting or financial advice. You rely on the contents at your sole discretion. We recommend that you consult with a financial adviser before making any changes to your group employee benefits. Momentum Metropolitan Holdings Limited, its subsidiaries, including Momentum Metropolitan Life Limited, will not be liable for any loss, damage (whether direct or consequential) or expenses of any nature which may be incurred as a result of or which may be caused, directly or indirectly, to the use or reliance on this publication. Terms & conditions apply.
Momentum Metropolitan Life Limited is an authorised financial services (FSP6406) and registered credit provider (NCRCP173), and rated B-BBEE level 1.
09/2021
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