WILLS
The importance of a will
Posted Thu, 26 Oct 2000

If a person dies intestate (without a will) there is no guideline as to how his assets are to be distributed. A properly thought out will can save a family from much confusion and discomfort. These are the main benefits of a will.

• The testator (person making the will) can specify exactly how his assets should be divided. If he does not have a will then people who were never intended to benefit from his estate could end up with his possessions.
• A well planned will can save large amounts of money on estate taxes.
• An estate that has a nominated executor will be wound up more quickly.
• A husband and wife can appoint a legal guardian for their children in the event of them both dying at the same time.

The testator may put into place specific requirements that the trustees have to adhere to. For example, if the trustee is declared insolvent or mentally incapacitated the will provides for a replacement trustee. It is recommended that a backup trustee be nominated at the time of making a will.

Any person aged 16 or older, who is mentally sound and understands what he is doing can make a will. But the person who has written the will on behalf of the testator may not be a beneficiary.

Requirements for a valid will:

1. It must be in writing.
2. The testator and two witnesses who are in each other’s presence must sign it. If the will has more than one page, all three people must sign every page.
3. A testator may ask a second party to sign on his behalf; two witnesses are also required.
4. If a will is signed on a testator’s behalf or the testator makes a mark (if he can not write) then it must be signed in the presence of a commissioner of oaths, or a magistrate.

Who can be a witness?

• Any person 14 years or older, who can give evidence in a court of law.
• An executor, administrator, trustee or guardian may not be the witness to a will.
• Neither can the spouses of the aforementioned parties.

Important Note:
When drafting a will it is highly recommended that you go to a professional for help. Attorneys, banks, accountants and trust companies are all qualified to help you, but try to appoint a trusted family member or friend as your executor.

Although many people draw up wills and consider it enough, if you are going to accumulate assets of R1-million or more in your lifetime it is smart to establish a Family Trust. This, in conjunction with a will, can protect your assets during your life, limit estate duty and keep strangers out of your family affairs.

The benefits of creating a Living Trust
If you have your own business, or if your estate is likely to be worth more than R1-million when you die, then you should seriously consider establishing a Living Trust. Read all about it to find out why this makes sound financial sense.