By: Byron Lukas
You wrote a will, put it somewhere safe and assumed the job was done.
But what happens when your life changes and your will doesn’t?
Relationships evolve, families become more complicated and financial circumstances change. What made sense when you first drew up your will might no longer reflect what you want to happen when you die.
With National Wills Week taking place from 14 to 18 September, it is a timely opportunity to check that your will and wider financial arrangements still reflect your wishes.
According to Marzanne Jordaan, Financial Adviser, and Nico Reinach, Wealth Manager at Consult by Momentum, most people make a will because they want loved ones to know what should happen when they die.
The problem is that life rarely stays the same.
Your relationship and family circumstances matter
The recent legal dispute involving former Public Protector Thuli Madonsela and the estate of her late partner highlights the difficulties that arise when what someone believed had been promised doesn’t match what is legally recorded.
This becomes particularly important for unmarried couples and blended families.
South African law now gives greater recognition to permanent life partners.
An unmarried partner may have inheritance or maintenance rights where reciprocal duties of support existed, but they may still need to prove the nature of the relationship after their partner dies.
A cohabitation, domestic partnership or life partnership agreement can provide greater clarity around ownership, financial responsibilities and what should happen if one partner dies.
Your will isn’t your entire estate plan
Having an up-to-date will is important, but it is only one part of estate planning.
Your arrangements might also include beneficiary nominations on life insurance and retirement funds, trusts and business interests.
Life insurance generally pays directly to the nominated beneficiary, while retirement funds are distributed by trustees after considering dependants.
This makes it important to review more than the names appearing in your will.
Check whether your beneficiary nominations and other financial arrangements still match your intentions, particularly following major changes in your personal or family life.
Will your estate have enough money available?
Estate liquidity is another consideration.
Executor’s fees, taxes and administration costs can reduce what beneficiaries ultimately receive, while estate duty may apply, subject to deductions.
Reviewing your estate should therefore include looking at your assets, liabilities and the costs that are likely to arise when your estate is administered.
Financial advisers can assess assets, liabilities, beneficiary nominations, costs and liquidity, while legal professionals can ensure the relevant documents accurately reflect your intentions.
Don’t wait until there is a crisis
Leaving important estate planning decisions until serious illness or old age creates additional risks.
Major changes made during these periods can be challenged.
Independent legal advice, appropriate witnesses and records explaining significant decisions can help provide clarity about what you intended.
National Wills Week is an opportunity to look at the arrangements you already have rather than waiting until circumstances force the issue.
Your life might have changed since you signed your will.
The important question is whether your will changed with it.
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