As we ease into 2025, many of us have outlined our personal and professional goals as we seek to enhance our quality of life. While New Year’s resolutions typically centre around health, finances, and personal growth, one crucial aspect is often overlooked: estate planning. Specifically, a carefully drafted will is essential to securing your legacy, facilitating the management of your affairs post-death, and safeguarding your assets for the enjoyment of your intended beneficiaries.
Crucially, a will enables you to clearly specify the distribution of your assets, including immovable property, savings and investments, artwork, furniture, and vehicles, in accordance with your preferences. Without a valid will, however, your estate will devolve according to the provisions of the Intestate Succession Act, which establishes pre-determined rules outlining how a deceased’s estate must be distributed. Predictably, this may not align with your wishes. Executing a will enables you to clearly designate which beneficiaries must inherit specific assets and to appoint residuary heirs.
Importantly, expressly articulating your wishes in a will can significantly minimise misunderstandings and fractious family disputes regarding the distribution of your assets and ensure the smooth administration of the estate. To facilitate the resolution of anticipated disputes and preserve family unity, your attorney may pre-emptively incorporate specific dispute resolution clauses in your will. For instance, in the event of disagreement, the will could provide for the appointment of a mediator to ease any lingering concerns.
If you are a parent of minor children, it is essential that your will not only outlines the distribution of your assets but also designates a responsible and trusted adult to assume the role of your children’s guardian. While this is especially necessary for single parents, it is also crucial in the event that both parents pass away simultaneously. Relatedly, it is imperative to appoint a trusted individual to care for your animals – and manage the funds intended for their nutritional, housing, and veterinary needs – in the event of your unexpected death.
It is both essential to make a will and to regularly update it to reflect significant life changes, including marriage, the birth of children, divorce, or the acquisition of any major assets such as immovable property. Undoubtedly, these events impact your estate planning requirements and must be captured in line with your current wishes.
Furthermore, a will forms part of a broader estate plan to minimise estate-related taxes, including estate duty, which is levied on the dutiable value of a deceased estate at a rate of 20% on the first R30 million and 25% on the amount exceeding R30 million, minus a primary rebate of R3.5 million. Effective estate tax planning thus ensures that a greater portion of your assets are distributed to your intended beneficiaries.
In light of the above, a will is not simply a legal document. It is a critical instrument that provides clarity and peace of mind by ensuring that your wishes and instructions are carried out when you can no longer express them. Despite its significance to estate planning, many individuals neglect to leave a will. As one might expect, this usually leads to uncertainty, heightened family tensions, bitterness, and resentment.
As we stride into 2025, make creating – or updating – your will a New Year’s resolution you’ll be glad you kept.
For more information or to set up a consultation with a skilled attorney, contact our estate planning specialists at estates@stbb.co.za.
