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30th March 2023The Importance of Having a Will: Secure Your Legacy
When it comes to planning for the future, many people focus on building wealth, acquiring assets, and achieving their life goals. While these are undoubtedly essential aspects of life, it’s equally vital to consider what happens to your estate after you are gone. This is where a will plays a pivotal role. A will is not just a legal document; it’s a powerful tool to ensure your wishes are respected, your loved ones are cared for, and your legacy lives on. Here we consider the importance of having a will.
- Providing Clarity and Protecting Your Loved Ones
One of the most significant advantages of having a will is the clarity it offers. By clearly outlining your wishes regarding the distribution of your assets, and appointment of your executor, you eliminate any ambiguity that might otherwise lead to disputes among your heirs.
This ensures that your loved ones know precisely what you intended. You can designate guardians for minor children, ensuring they are placed in the care of someone you trust, and set up a minor’s trust to avoid funds being paid to the government run Guardian’s Fund. When a person passes away without a will, their estate is subject to intestacy laws. These laws dictate how assets are distributed without considering your personal wishes.
- Ensuring your will is legally valid
When an attorney, experienced in estate planning and will drafting, drafts your will you will know that the document meets with the legal requirements of a valid will. If these requirements are not met, your will won’t be accepted by the Master and the laws of Intestacy will dictate how your estate is distributed. Attorneys specialised in estate planning and will drafting, such as the team at Pagdens, also know about possible traps and problems to avoid.
Will drafting is based on the law and attorneys are most suited to deal with legal issues and interpret and draft legal documents. When considering the wills of new clients, we have found that many do not meet the legal requirements of a valid will or are not correctly structured considering the personal circumstances of the client.
- Minimizing Family Disputes
The absence of a will can lead to family disputes and legal battles over the distribution of your estate. This not only causes emotional distress but can also deplete the assets you’ve worked hard to accumulate. With a will in place, you make it clear who gets what. Without a will, the administration process can be time-consuming, costly, and burdensome for your loved ones.
- Charitable Giving and Legacy Building
If you have charitable intentions, a will provides an avenue to leave a lasting legacy. You can specify donations to your favourite causes or establish charitable trusts that benefit society for generations to come. This allows you to make a positive impact beyond your lifetime.
- Estate and Tax Planning
A will allows for strategic tax and estate planning. You can minimize the tax liabilities of your estate and maximize what your heirs receive. With the proper guidance, you can take advantage of tax-saving opportunities and ensure your wealth benefits your family as much as possible. Without proper planning, you are at risk of losing a possible 34.4% of any growth in your estate due to Estate Duty and Capital Gains Tax.
One example of a common problem encountered is a client nominating a minor child as the beneficiary of a life policy. Should the client pass away while the child is still a minor, the other parent would be left to control the child’s funds. The surviving parent may not best suited to make the required decisions regarding a large sum of money. If the estate is nominated instead, a minor’s trust could be set up with skilled trustees making decisions ensuring the best investment decisions for the child’s inheritance. The executor can agree to waive their fee on the proceeds of this policy as well. You can visit www.pagdens.co.za and read our news articles for more ways that we have saved our clients money by structuring their estates correctly.
Pagdens is celebrating 125 years in industry, serving and guiding our clients through legal processes, including setting up wills and administering the estates of our clients to ensure that their families are well looked after and their wishes are carried out. We have clients from various backgrounds, ages and levels of wealth. We have saved our clients millions by ensuring that their estates are planned correctly and updated as and when the tax laws or their personal circumstances change.
Contact us this week to join our client base and experience our professional client service, care and expertise. Don’t wait for tomorrow; let us help you plan for your family’s future today by creating a will that reflects your wishes and values. Even if you already have a will in place, it is not going to cost you anything to get a second opinion.
For a free consultation and a free basic will email ilse@pagdens.co.za or call us at 041 502 7200. You can also visit the Wills page at www.pagdens.co.za/wills and complete the online form.
