Question 1

You do not need a will, especially if you are a working-class person and don’t have a lot of properties

Accepted Answer

A Will is important due to the fact that in South Africa you have freedom of  Testation which allows you to prescribe how you wish your estate to be distributed. A will also  allows you to provide other important directions such as preferred guardians of minor  children, setting up of Testamentary Trusts (so as to avoid minor’s inheritance from going into  the Government Guardian’s Fund), appointing an Executor, etc. all by way of the Will.  If you do not have a will then your estate will be distributed in terms of the provisions of the  Intestate Succession Act 81 of 1987. The government will distribute it according to a set  formula which may not be how you intended your assets to be distributed

Question 2

To avoid taxes and administration fees – don’t put anything of value in your will”.

Accepted Answer

Your estate, in its entirety (not just your Will) is administered and attracts taxes and  fees, even if you do not have a will this is still the case. The Estate Duty Act 45 of 1955  prescribes that a person’s estate consists of all property of that person at the date of death  and all property which in accordance with the Act is deemed to be property of that person at  the date of death. This is regardless of whether or not that person stipulates such property in  their Will or has no Will in place.

Question 3

The only things that you should have in your will are what you want to give your 
children, and what you want to happen when you die, how you get buried / ashes scattered
etc. and items like shoes, bags, belts, clothing, jewellery.

Accepted Answer

In the event of not dealing with your entire estate in your Last Will and Testament,  you will die partly testate and partly intestate, meaning that the bequest and provisions you  make in your will shall be carried out accordingly, however, the remainder of your assets will  be distributed in terms of the provisions contained in the Intestate Succession Act 81 of 1987. Failing to provide for provisions such as creation of Testamentary Trusts for minor children  would mean that the inheritance of such minor children will be placed in the Government  Guardian’s Fund.

Question 4

Assets, investments, share portfolios, shares, policies, house – don’t put it in a will. 
If you just nominate the beneficiaries in your policies and pensions then you don’t need a will, 
as long as they’re of age – they will inherit it. Put your beneficiaries as co-owner of the 
investments. Make sure that you don’t need lawyers and administrators. Avoid the process –
children can directly inherit.

Accepted Answer

Although beneficiary nominations are possible for certain investments, life policies  and retirement funds, and will therefore not form part of your executable estate, these assets  will still be subject to relevant taxes such as estate duty and capital gains tax. However, this is  not possible for a majority of assets and certain assets are restricted from having co-owners.  Even if the assets are not included in your will or you do not have a will in place, your estate  still needs to be reported to the Master of the High Court in terms of the Administration of  Estates Act 66 of 1965, and an executor appointed in order to administer your estate. By law  executor's fees are up to a maximum 3.5% plus VAT (if applicable). There are also further complications with his view of transferring ownership of assets to  dependents as it doesn’t account for the possibility of them passing away before you do.

Question 5

The rich don’t own anything when they die – therefore it doesn’t go through probate 
and they don’t pay estate duty. They avoid all fees because of proper estate plans. (We assume 
he is referring to trusts). If you don’t have a lot – put everything in your children’s names. 
Beneficiaries must be the ones to claim the monies on their behalf.”

Accepted Answer

Firstly, probate is foreign concept and is not applicable in South African Law. The notion that the “rich” don’t own anything when they die is nonsensical. Certainly proper estate plan is absolutely essential, and this includes a correctly structured  Last Will and Testament and may include other vehicles such as trusts where they make sense. Inter vivos Trusts also form part of a proper estate plan and having such structures can greatly  reduce costs and taxes when you pass away, as assets owned by a Trust do not form part of  your personal estate and are therefore not subject to executor fees and taxes such as estate  duty and capital gains tax when you pass away. However, these structures can also be complex  and costly to set up and run required professional to help administer and do proper accounting  thereof.

Question 6

Only the Breadwinner Needs Life Insurance

Accepted Answer

Reality: Life insurance can benefit anyone who contributes to the household, including stay-at-home parents, by covering childcare and household responsibilities.

Question 7

Life Insurance is Only for Older People

Accepted Answer

Reality: Younger individuals can benefit from lower premiums and longer coverage periods, making it advantageous to purchase life insurance early.

Question 8

My Employer's Policy is Sufficient

Accepted Answer

Reality: Employer-provided life insurance may not offer enough coverage and is often lost when changing jobs. Personal policies ensure continuous and adequate protection.

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