There is a saying that planning to fail is better than failing to plan. This could not be truer when it comes to estate planning and making sure you have all the needed documents and information safely stored and available for your family, should you pass away.
In a fantastic country song titled ‘Til you can’t’, sung by Cody Johnson, there is an unequivocal statement that is made. Do what you can and must, because at any time you might not be able to do it anymore. So, let’s discuss what each person can do in their personal financial and estate plan before they can’t.
- Draft and review your Will regularly. A Will is one of the most important legal documents that any person will draft and sign in their life. This document sets-out how your estate should be bequeathed at your death, what provisions should be made for the heirs, such as testamentary trusts for minor children, etc. A Will is a legal document and has to adhere to certain requirements to be valid. It is therefore important that your current Will be reviewed regularly to check whether it complies with these legal requirements and updated when needed.
- Review all your beneficiary nominations. Some financial products and investments allow you to nominate beneficiaries. The ability to nominate beneficiaries is a great tool to effectively transfer wealth, provide capital for dependents and in some instances avoid unnecessary costs and taxes. Products such as life cover, profit shares, endowment and sinking fund investments, living annuities and retirement annuities, usually provide you with the ability to nominate beneficiaries. Use them.
- Review and audit trust deeds. Trusts are an important part of South African estate planning and holistic financial advice. Trusts are seen as a creature of documents as the trust deed governs what the trustees may and may not do. It is therefore extremely important that when a trust is part of your estate plan, to review, and audit it regularly.
- Conduct a holistic estate planning exercise with a professional. There are numerous intricacies in estate planning and factors that are beyond the scope of this article that are important and could make the world of difference. It is highly recommended that you consider having a holistic estate plan done to ensure that you are aware of these intricacies and plan for them accordingly.
- Get your tax affairs in order and up to date. Make sure you have filled all your tax returns and that you are in good standing with SARS.
- Passwords for any crypto assets. Make a list of all usernames, pin codes and passwords associated with any crypto assets and other online subscriptions. It is advisable to entrust someone with this information to enable the executor of your estate to properly access these assets/subscriptions and deal with them in accordance with your Will.
- Review any agreements that you or your estate will be bound to. Agreements such as buy-and-sell agreements, shareholder agreements, purchase agreements etc. are examples.
There are numerous important documents that must be available after death to ensure that the executor can effectively report and administer your estate. A few of these documents are:
- Originally signed Will and codicil
- ID document and/or passport
- Marriage certificate
- Ante-nuptial Contract or post-nuptial contract
- ID document of your spouse
- Shareholder certificate/s
- Shareholder agreement/s
- Fixed property title deed/s
- Vehicle registration document/s
- Trust Deed/s
- Firearm license/s
- Buy-and-sell agreement/s and other relevant agreement/s
- Summary of assets and liabilities
- Summary of insurance policies
- Investment schedule or summary of your investments
- Proof of tax number and tax returns submitted
- E-filing details or the details of the person that assists you with your tax affairs
- Living Will
- Divorce settlement/s
- Details of any suretyship agreement/s
- Crypto assets details
It is clear that there are many factors to consider, and documents to keep record of and store safely. Consider contacting us to assist you in making sure that you have done what you can before you can’t anymore.
Kindly be advised that the article above is for informational purposes only and does not constitute financial advice. For personalized guidance, please consult one of our financial advisors.