1 When sitting down with your financial advisor, disclose all your assets and discuss your financial circumstances in detail.
A properly tailored and clearly set out will ensure your wishes are taken into account after your death, allowing you to create the legacy you envision for the next generation. Having an honest discussion with your advisor is an important first step.
2 Create two or more wills if you have assets abroad.
The rule of thumb is to have one will per jurisdiction where you have fixed property, as the laws governing the properties may differ. It sounds complicated, but in effect they are similar documents that just cater for the assets specifically. This will make it much easier and more efficient to wind up your estate.
3 Remember that nominated beneficiaries in investments override your will.
The nominated beneficiaries in your investments, policies and annuities do not need to be included in your will but it is helpful if everything is set out clearly in your will for record purposes.
4 You can override a joint will.
Your rights of freedom may not be infringed, so you cannot be locked into or bound by a joint will. You can make a new will at any time.
5 Make sure your will is valid.
The Wills Act is strict on what is deemed a valid will. A valid will has to be signed on every page in the presence of two independent witnesses and dated. The witnesses are not in line to benefit from the will – they really must be independent.
6 Understand the costs involved in winding up your estate.
Consider setting aside approximately 10% of the value of your estate to cover the associated fees and duties related to winding it up. While the prescribed rate for executor’s fees is typically 3.5% of the value of the estate, it’s worth noting that this rate is negotiable. All taxes up to the date of death must be settled because your passing is considered a taxable event. Additionally, estate duty of 20% applies to estates exceeding 3.5 million.
7 Make sure your original will is stored safely.
Ensure your original will is securely stored. You could leave it with your advisor for safekeeping and request a certified copy. Also make sure to inform your next of kin about the will’s location, so there’s no unnecessary chaos down the road.
Consider using an online asset register to keep track of essential documents like ante-nuptial contracts, title deeds, and divorce decrees. This approach avoids the hassle of old-fashioned filing cabinets and the unpredictability of natural disasters.
