The best piece of financial advice you’ll get all year… is not what you’d expect!

The best thing you can do to complete your financial plan is to draft your will. It’s time to start thinking of a last will and testament as an integral part of your financial plan, instead of a piece of personal admin that relates only to the end of life.

Author: Grant Fietze, head of marketing at Capital Legacy

In fact, have you considered starting your financial planning with your will, instead of leaving it till last? Knowing how you want the end to look helps you structure and plan today.

For example, if you want to make sure your children can study one day, you have a vulnerable dependant you need to look after, want to leave business interests to your family, or ensure your home and other assets don’t end up being liabilities for your kids… this should influence how you save and invest, how much life cover you take out, whether you set up a trust, etc. Far from being separate from your will, these financial decisions should be closely intertwined with it.

Why? Because like it or not, dying without a will in South Africa sets a series of events in motion that could undermine what you’d intended to happen:

1. The law of Intestate Succession is applied to your deceased estate.
   
2. The courts appoint an executor.
   
3. Your minor children’s inheritance passes to the government’s Guardian Fund.
   
4. The courts appoint legal guardians if there is no surviving biological parent.
   
5. All this admin delays the deceased administration process and inheritances cannot pass to your beneficiaries before all steps have been completed.
   

Imagine leaving the fate of your family and your legacy to a government-run process!

Financial foundation

Your will is the document that underpins your financial plan and your final wishes. It affects everything you’ve worked so hard for: your home, your assets, your savings and investments, your vehicles, your business if you own one, even your pets. Your will can ensure that everything is distributed in line with your wishes, not according to the Law of Intestate Succession that doesn’t know you or your values, nor your family.

Real-life scenarios

We’ve all heard the stories of families fighting over heirlooms, siblings refusing to speak to each other, children left with uncertain futures. These are some of the scenarios that can play out in real life when someone dies without a will. Unfortunately, it happens far more often than most people realise.

Drafting a will is the simplest way to spare your loved ones unnecessary administrative and legal burdens after you pass away. It’s not about being morbid. It’s about being realistic, clear-eyed and responsible. It’s about ensuring that your financial roadmap doesn’t end in a dead end, but helps set up your family for prosperity after you’re gone.

In South Africa there are cultural taboos around discussing death, but we really do our loved ones no favours by avoiding the topic.

No drama

A will is not only about correctly distributing your assets – it’s about empowering your loved ones. It gives them clarity, direction, and peace of mind.

It ensures that they don’t have to make difficult decisions while grieving. It saves them from unnecessary costs and legal battles.

It helps ensure there’s no family conflict and saves them from drama at a time when they should be grieving and remembering you.

Best piece of financial advice

Good financial advice is very important. Talk of diversifying your portfolio, having a good tax strategy, and choosing the best investment vehicles – all excellent, but don’t ignore the one document that helps ensure your wishes are carried out. Because without a will, your financial roadmap ends in confusion. With a will, it ends in clarity.

Your financial planning is about more than numbers – it’s about people, family, home, and building a future. Drafting a will is an act of love and responsibility. It’s the roadmap that helps ensure your life’s journey continues after you’re gone.