Financial adviser in South Africa explains risks of an unclear will — Daily Maverick
In South Africa, in the absence of a valid will, the law determines who will inherit a deceased person's property. Independent financial adviser Kenny Meiring noted in an article by Daily Maverick that a will should be part of financial planning and take legal and tax implications into account.
According to the adviser, it is important to determine not only who will inherit assets, but also when and in what sequence this will happen. Property transferred to a surviving spouse can generally pass without estate duty or capital gains tax being charged at this stage. At the same time, transferring part of the assets to children after the death of one parent may immediately result in tax costs. If there is not enough money in the estate to pay them, investments or real estate may need to be sold.
Clear terms and an executor
Meiring stressed that unclear wording in a will can exacerbate disputes among relatives. In his view, particular attention is required for remarriages, children from different relationships, businesses, assets abroad, and unequal distribution of an inheritance.
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An executor who will settle estate matters should also be chosen. Banks have specialized divisions and established procedures, but may handle many cases at the same time. An independent professional executor may offer more personalized support. The author advises assessing the executor's experience, availability to the family, and the cost of services.
Planning for loss of capacity
The adviser also drew attention to planning for situations in which a person loses the capacity to manage their own affairs independently. According to him, an ordinary power of attorney usually ceases to be valid when a person no longer has such capacity. In this situation, the appointment of a curator or administrator may be required.
In addition to an ordinary will, Meiring advises discussing medical wishes in advance with family and a doctor in case a person is unable to express them. He also recommends preparing a separate file for loved ones with information about where the will is kept, the executor, financial adviser, investments, insurance policies, property, and debts.
