The Importance of a Will and Succession Planning
By Linda Greeff, 8th December 2014
Have you ever asked yourself the all-important question, “Why do I need a will?” The general misconception is that a will is primarily for the wealthy. Some people say: “but I live a modest life, should I concern myself with a will?” The answer is a resounding, Yes!
What is a will? A will is a legal document that communicates a person’s final wishes, as pertaining to possessions and dependants. This last will and testament will have clear instructions on what to do with your possessions and dependants. It will outline what to do with your possessions, whether they are being left to a family member, another person or maybe donated to a charity. Regardless of how much or how little money you have, you should have a will!
Should you have minor children, your last Will and Testament should ideally indicate who will serve as Guardian for your children until they are classified as adults. In addition to this, you can provide for children from a previous relationship or children with special needs.
If you die without a valid will and you leave behind minor children, their inheritance must be paid into the Guardian’s Fund, where it must remain until their 18th birthday. Consequences of this could be the possible sale of the family home, which is quite possibly something you would never wish to happen; furthermore a minor heir may be too immature to comfortably handle the proceeds of the estate or could be physically or mentally handicapped. With a valid will, the testator can set up a testamentary trust which stipulates how the assets must be managed on behalf of the minor, thus eliminating the burden to your children.