Themba says after they have discussed how to create a will, Sophie will need to list all the people who will be affected if something happened to her. Sophie starts thinking about it and comes up with her two children, her partner, her parents, her employer, friends and extended family.
Themba says she must look at her list and see who she would like to make her heirs for anything she owns or beneficiaries on any policies she has. He tells her to remember that if the beneficiary is younger than 18 then they need to have a guardian to help guide them.
He says he knows that she would rather not think about her life ending but it could be worse is if her family is not cared for according to her wishes.
Your will is the first step in having an estate plan. It is important that your will is created in line with what is required by law for it to be valid.
Steps to follow when you make a will:
PLAN THE WILL:
• Make a list of all the things you own and owe
• Choose your heirs (people who will inherit from you)
• Choose guardians for your children
• Choose an executor for your will (the person who finalises your estate)
• Think about your funeral arrangements (e.g. whether you want to be buried or cremated).
WRITE THE WILL:
• Consult with someone who can write down your wishes as you have identified them in step 1.
SIGN AND STORE THE WILL:
• Sign the will, make sure it is stored securely and tell your family or the executor where they can find it. It is however encouraged to have it filed with the Master of High Court.
It is essential to have all your important documents stored in a safe and central place so that if anything were to happen to you, your family or friends would be able to access them.
It is important to remember that there are fees that may need to be paid in the form of estate taxes. You will need to speak to your financial adviser to ensure that you are aware of the costs involved in administering your estate. Themba tells Sophie that if there is limited money available in the estate, heirs may be unable to settle the estate’s liabilities like home loans, vehicle finance, unpaid taxes and attorneys’ fees. This would result in the remaining assets being sold to cover the costs.
Sophie asks Themba about the concept of a living will. Themba tells her that a living will is a will stating what a person would want to happen to them if they were unable to physically communicate, like when in a coma with slim chances of recovery. A living will state what the person’s wishes would be in those circumstances such as the type of medical care they would want.
Sophie says that she is going to make sure that she has all this information in her will and will get Themba to help her write it.