Drafting a last will is a big deal in estate planning but it’s only the first step. By doing the following you not only get your assets in order but also make the transition easier for your loved ones.
Reviewing and Refining Your Will
Drafting your will is a significant milestone, but it’s not a one-and-done task. To ensure your final wishes are honored and your loved ones are well taken care of, it’s crucial to review and refine your will regularly. Experts recommend revisiting your will every three to five years or whenever you experience a major life event, such as marriage, divorce, the birth of a child, or the passing of a loved one.
Review Your Asset List
Start by taking a close look at your asset list. This includes all your financial assets, fixed assets, and any intangible assets that hold economic benefit. Make sure this list is up-to-date and accurately reflects your current financial situation. Have you acquired new assets, such as property or investments? Have you sold any assets that were previously listed? Keeping this list current ensures that your will accurately represents your estate.
Update Your Beneficiaries and Executor
Life changes, and so might your choices for beneficiaries and executors. Review the individuals you’ve designated to inherit your assets and ensure they are still the people you want to benefit from your estate. Similarly, confirm that your chosen executor is still the best person to carry out your final wishes. If any changes are needed, update your will accordingly to reflect these new decisions. This step is vital to ensure that your assets are distributed according to your current wishes and that your estate is managed by someone you trust.
Where to Store Your Will and Inform Your Executor
Once you have reviewed and refined your will, it’s essential to store it in a safe and secure location. You should also inform your executor of the location of your will and provide them with a copy.
Where to Store Your Will and Inform Your Executor
In South Africa once your Will is signed by you and two witnesses it’s legally binding. You need to store this document in a safe place where your Executor can get hold of it. Unlike some countries South Africa does not require Wills to be registered or lodged with a central registry during your lifetime.
Storage Solutions
Store your Will in a fireproof safe at home or with a trusted family member or your lawyer. Alternatively some banks and lawyers offer document storage services for these important documents. The key is to make sure your Executor knows where to find your Will when needed.
Communicate with Your Executor
Your Executor must have access to your Will but does not need to share the contents with beneficiaries before you pass away. Communication is key; tell your Executor where you stored your Will and any changes to your Will. This way they will be ready to act quickly and according to your wishes.
You will need to update your Will as your life changes. Make sure to destroy any old versions to avoid confusion. Always execute a new Will with the proper legal formalities to make it valid.
Asset Inventory
In South Africa an asset inventory makes it easier for your Executor to manage your estate. The Executor will need to provide a detailed account of assets and liabilities when applying for the Master of the High Court’s Letters of Executorship. Current assets, such as cash and accounts receivable, play a crucial role in this inventory as they are short-term economic resources expected to be liquidated or consumed within one year.
How to Create an Asset Inventory
- Real Estate: List all local and international properties. Describe, current value and any supporting documentation (e.g. deeds of ownership).
- Personal Possessions: Categorize valuable items like vehicles, electronics and collections. Describe and appraise where necessary.
- Financial Information: List all bank accounts, investment portfolios, retirement annuities, cash equivalents, and any unit trusts. Include account numbers, held balances and names of financial institutions.
- Liabilities: Note all debts, from mortgages to credit card balances. Include personal loans, contractual obligations, and any outstanding obligations.
- Non-Probate Assets: List assets that will not go through probate, like life insurance with named beneficiaries or jointly held properties. Although they are not part of the estate, note them so that it’s clear.
Keep this inventory up to date and with your Will or in a safe place so your Executor can manage your estate smoothly.
To make this process easier for you, LegalWills.co.za has created “MyLifeLocker“. This service allows you to document all of your assets and people to contact. This would allow your Executor to immediately start work on items like working with your utility companies, cancelling your subscriptions and making sure that payments stop for services not being used. In general MyLifeLocker ensures that no assets go undiscovered by your Executor.
Funeral Preferences and Final Wishes
Your Will is for asset distribution not funeral instructions. To make sure your wishes are followed detail your funeral preferences separately and tell your family and friends.
Why a Separate Document?
By the time your Will is read the decisions about your funeral are usually already made. Express your wishes for the type of service, burial or cremation, whether you want a gathering and any other details in a separate document.
Tell Your Loved Ones
Talk to your loved ones about your funeral wishes and give them access to your written instructions. This will prevent disputes and ensure your wishes are followed. Planning ahead also takes the burden off your family when they are going through a tough time. Additionally, writing thoughtful sympathy messages is crucial to provide comfort and avoid offending the recipients during bereavement.
In South Africa funerals can be very expensive so clear instructions about your financial preferences for these arrangements can be very helpful.
Power of Attorney and Advance Directives
In addition to a Will consider a Financial Power of Attorney and an Advance Directive for healthcare, known in South Africa as a Living Will or an Advance Care Directive. It is also crucial to appoint legal guardians for minor children within your will to ensure their care and upbringing by trusted individuals in the event of your death.
Financial Power of Attorney
This document allows someone you trust to manage your finances if you are unable to do so. It remains in force during your lifetime and lapses on your death.
– Enduring Power of Attorney: Remains in force even if you are incapacitated. Allows your representative to manage investments, pay bills and manage property on your behalf.
Advance Care Directive
An Advance Care Directive outlines your healthcare preferences when you cannot communicate for yourself. This includes appointing a healthcare proxy to make decisions in line with your wishes.
- Healthcare Proxy: Appoint someone to make medical decisions on your behalf. So your medical treatment is in line with your wishes.
- Medical Instructions: Specify what treatments you want to receive or avoid in situations like terminal illness or permanent coma. Different medical treatments can be treated differently based on personal preferences.
These documents are important so that your financial and medical wishes are followed if you cannot express them.
Your Digital Estate and Digital Assets
With the rise of digital technology digital estate planning is becoming more important. In financial accounting, managing digital assets involves categorizing them as resources that can generate positive economic value. Include online assets like social media accounts, email accounts and digital wallets in your estate plan so they are managed according to your wishes.
Digital Assets
1. List All Digital Resources: Email, social media accounts, online banking, subscription services and any other online presence.
2. Provide Access Information: Keep a secure record of usernames, passwords and security questions for these assets.
3. Digital Executor: You can appoint a specific person to manage your digital estate to protect any information and ensure your wishes are followed.
In South Africa digital estate planning is not yet part of the standard probate process but outlining your wishes will help your loved ones manage these assets and reduce the risks associated with digital ownership.
Complete Your Estate Plan
LegalWills.co.za has all the tools to complete your estate planning. Use MyLifeLocker and MyFuneral to make sure all your wishes are known and can be actioned.
Using these services means you and your loved ones can face the future with peace of mind knowing every part of your estate is planned.
Get started today and go beyond just writing your Will. By doing so you will protect your loved ones and have your legacy followed according to your wishes.
He has over 20 years of experience helping people to write their Will and other estate planning documents. He has been interviewed by many of the major news media outlets and has contributed to articles in most leading publications. He has also contributed to a number of financial planning books.
Throughout his career, Tim has written extensively on the subject of Will writing and estate planning.
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