It is commonly understood that the topic of 'death' is not one that is brought up over a friendly lunch, and in fact, many of us avoid these conversations even in deeper settings because of the inherent fear we have surrounding the topic - especially as we get older. Yet, along with change and taxes - death is one of life's only real certainties, and you can prepare for this certainty today so that your loved ones can have the easiest transition possible into the period of your inevitable 'dispatch'.
So, if we know death is unavoidable, why hide from it? You have the power to take ownership of how things will pan out following your departure, and to ensure that everyone that you care for is well looked after when you are no longer there. As your financial planners and advisers, we ask you the hard questions now, so that so that the answers are there before that time arrives!
So, what's the Big Deal?
Along with the relief that having a valid Will can provide your family and dependents in their time of loss and grief; the process of preparing your Will, and the knowledge that you have your estate in order, is also known to be one of the top anxiety- and stress-relievers for many adults. In fact, "People with a Will are twice as likely to feel positive emotions of empowerment and confidence, and three times as likely to feel happiness about obtaining a will when compared to those without", according to Fortune Well.
Despite this, the task of addressing one's mortality is an emotional one, and we see human nature at its finest in that many people delay this process to distance themselves from the inevitable.
Our advisers understand this sensitive process better than anyone, and will work closely with you to ensure that your Will complements your estate plan and financial plan, and fulfils your wishes for your loved ones. Preparing a Will is also a mutual task when you have a partner or someone with whom you share dependents, as you should both be in agreement, especially in respect of simultaneous death of you and your spouse/partner. It is important that your wishes for your dependents are in alignment, and we encourage couples to engage in a discussion of these plans together during our financial planning sessions, covering all aspects, while ensuring your assets will be distributed in the exact way you would like them to be.
The final (and continuous) part of this Will-drafting process is a regular review, usually in conjunction with your Annual Financial Review, wherein we will re-asses your Will to accommodate for any changes to be made due to changes in your circumstances, or assets gained. In most cases, there will be minimal changes over 1-3 years, but as you grow and gain throughout life, it can become even more important to update your Will than it was to draft your first one! Imagine the changes that may occur over the years - marriage, divorce, birth, death, gains and losses, all of these affect your estate, and should be accounted for in your Will review. Our advisers encourage annual reviews with our clients in order to ensure that your Will adds value for you and your loved ones, as well as falling in line with your current situation or circumstances.
Preparing your Estate
The preparation of your estate is not a task taken lightly by us at Finpas. This very personal process is undertaken to align your personal assets, contractual obligations or debts, and retirement fund benefits in the most valuable way for your needs, as well as those of your family and dependents'. All important components of your assets, both physical and digital, need to be taken into consideration to make the management and transfer of your estate as smooth as possible for your loved ones. Some good advice would be to make sure all specifics are accounted for, and that if an item is valuable to you in any way, to write this down and put it in your will!
With regards to long-term generational asset growth, or the protection of those who depend on you for financial support upon your demise, your adviser will likely suggest setting up a trust or recommend a trust clause within your Will. A Will trust has the benefit of no transfer duties or death taxes when transferring assets under R3.5 million.
Of course, like all of aspects of financial planning, the type of Trust you set up will be dependent on your own situation, so it is important to make sure you choose how best to structure your wealth using Trusts, in discussion and with the guidance of your qualified financial advisor.
Where there's a Will there's a... wait?
Our last point relates to a question we think everyone drafting a Will should consider - When your estate may take years to wind up, how do you financially protect your dependents in that period? Many people are under the impression that their beneficiaries will have full access to their assets come the time of their death, but are not aware that it can take up to 6 months before the executor may even start on your estate, and from there another year - sometimes years - before it is wrapped up!
The solution to this is to ensure that some of your assets have a beneficiary nomination. This will ensure an immediate payout and sense of security to your loved ones, as it will bypass the estate. The best option for you, as stated before, depends on your own personal circumstances. Whether your dependents are your parents, your spouse & two (or twelve) children, your partner, or your pet - our advisers will provide you with the most beneficial cover options for your requirements.
Whether you have yet to draft a Will, you feel the need to review and update your current Will, or you simply haven't thought to update your existing Will over the last few years, Finpas is here to help you manage your estate, and ensure all of the plans for your legacy fall into place!
For couples looking to review their wills together, we are still offering a limited number of free couple's consultations with one of our advisers on a first-come first-served basis.
Get in Touch today to book your free meeting with us!
Comentários