Have you ever thought about what would happen to your loved ones if you were no longer here? It’s a difficult question, but one that National Wills Week, held from 16-20 September 2024, encouraged us all to consider. This annual event reminded South Africans of the vital importance of having a properly executed will. At Sterling, we recognise that estate planning is an ongoing process, not a one-time task. That’s why we encourage our clients to review their wills and investment beneficiary nominations annually.
Why You Need a Will
Imagine for a moment that you could leave one final message to your family and friends. What would you say? What would you want them to know? In essence, that’s what a will does. It’s your voice when you’re no longer able to speak for yourself.
You might think, “I don’t need a will. I don’t have much to leave behind.” But here’s the thing: a will isn’t just for the wealthy. It’s for anyone who cares about what happens after they’re gone. Whether it’s ensuring your children are cared for, your debts are settled, or even that your beloved pet finds a good home, a will makes your wishes clear.
Surprisingly, over 70% of South Africans don’t have a valid will. This oversight can lead to unnecessary stress and complications for loved ones during an already difficult time. Creating a will doesn’t have to be complicated. It simply needs to be in writing, signed by you, and witnessed by two people.
Beyond the Basics: The Importance of Financial Advice
While National Wills Week offers the opportunity to create a free will, it’s important to understand that these are often basic documents. They may not fully address complex financial situations or intricate investment structures. If your financial affairs are complicated, a basic will might not be sufficient.
This is where a financial advisor becomes crucial. They can ensure that your will accurately reflects and addresses your complete financial picture. Your advisor understands the nuances of your investments, retirement funds, and other financial structures. They can help create a will that not only distributes your assets but also provides guidance on managing complex financial affairs after you’re gone.
Getting Your Affairs in Order
Think of estate planning as creating a roadmap for your loved ones to follow. It involves more than just writing a will.
Lawyers can ensure your will is legally sound. Financial advisors can help organise your assets and provide crucial insights into your financial structures. Accountants can clarify your financial obligations, sometimes highlighting loan accounts that will need to be dealt with in your estate. A financial advisor coordinating these efforts is crucial to ensure a comprehensive approach.
They can oversee the intricate details, ensuring nothing is overlooked and your will accurately reflects your financial situation. This coordination becomes particularly important when considering the complexities of death taxes and bequests. A skilled advisor can perform the necessary calculations to determine if there’s sufficient liquidity to fulfil your wishes, taking into account the potential tax implications and the specifics of your bequests. This thorough analysis guarantees that your estate plan aligns with your intentions and is practically achievable.
A Gift to Your Loved Ones
Creating a comprehensive will is an act of love, a way to care for your family even after you’re gone. While it means confronting your own mortality — a challenging task — it also empowers you to shape your legacy and provide clarity for your loved ones. Your financial advisor will guide you to gather essential documents such as marriage contracts, property title deeds, and investment details. They’ll even help you compile seemingly minor details like your parents’ names, which the Master’s Office requires. By collecting this information, your advisor ensures your estate can be settled efficiently, turning a potentially daunting task into a thoughtful, thorough preparation for your family’s future.
Remember, seeking help with this process isn’t a weakness – it’s a smart decision. Professional guidance, especially from a financial advisor who understands your complete financial picture, can turn a daunting task into a manageable one. This gives you peace of mind and your loved ones a clear path forward.
Your foresight today can provide immeasurable comfort tomorrow. So take that first step. Start the conversation. Create a will that truly reflects your financial reality. It’s one of the most important gifts you can give to those you love.
