A matter of will

Everybody needs to have a will, so it is one of the most important items on your financial check list. Many people avoid writing up a will because it reminds them of their own mortality, but it is vital to protect those you care for when you are no longer there.

Why you need a will
To avoid chaos: should you die without a will your assets are distributed according to the Intestate Succession Act, Nr 82 of 1987. A high probability of administration, taxation and legal complications arise when a person dies intestate.

To have your wishes carried out: what you may have wanted to take place on distribution of your assets and the care of your loved ones is now determined by the Act, not your wishes.

Key points

• Update regularly: revise your will regularly especially when circumstances in your life change.
• Assets and liabilities: in drafting your will you should create a list of current assets and liabilities with a realistic value on each. You may want to nominate heirs or beneficiaries for specific assets, including sentimental objects such as jewellery.
• Guardian: you should consider appointing a guardian if you have minor children. If you are paying maintenance as part of your obligation on a divorce, you should keep this in mind as a future responsibility that needs to be maintained to your former spouse and children.
• Testamentary trust: make provision for minors or a spendthrift relative by stipulating a testamentary trust in your will.
• Identify: heirs should be clearly identified including full names, surnames, relationship and identity numbers.
• Make it practical: always look at creating a practical document — one that is easy to understand and can be executed easily.
• Don’t divide: it is not a good idea to leave an asset such as your house or car to your spouse and children. Placing these assets into the names of both your spouse and children can lead to practical problems and family disputes.
• Executor: nomination of an executor should be stated clearly. Your executor should be chosen with care as this person or institution is responsible for making sure your last wishes are carried out and are in the best interests of your heirs.
• Appointing expertise: a layperson cannot wind up an estate. He or she must appoint an agent to do so on his or her behalf.

For example an attorney, bank or a fiduciary institution to provide the required security, knowledge and continuity to meet the needs of your heirs.

Read the contents carefully and make sure you understand it fully.

Legal witnesses may not derive any benefit from the will, they must be older than 14 and they must be able to give evidence in a court of law. Any alterations to the will must be signed by you and the two legal witnesses.

Information provided by Linda Sherlock, head of FPC consulting at Alexander Forbes

Call your bank

A recent bank inquiry report showed that someone with a pay-as-you-use account would have paid R700 a month for the same amount of transactions that Standard Bank offers in its R80 a month bundled option.

When criminals look to skim a credit card they go for the gold and platinum ones first because they know they have higher limits.

Cover your back
Every year you need to update your short-term insurance to make sure you are paying the right premium and getting the correct cover. The following should cover your insurance check list: