Why do you need a will?
A will is how you protect the people you leave behind. In it, you decide who inherits what, name the executor who will wind up your estate, and name guardians for your children.
If you die without a valid will, the Intestate Succession Act decides who inherits: first your spouse and children, then your parents, then your brothers and sisters. That may not be what you would want.
If a child under 18 inherits and there is no trust, the money may be paid into the Guardian’s Fund, run by the Master of the High Court, until they turn 18.
What makes a will valid?
The Wills Act sets the rules:
- You must be 16 or older and able to understand what you are doing.
- The will must be in writing and signed by you at the end.
- You sign in front of two witnesses aged 14 or older, both present at the same time, who then sign in front of you and each other.
- If the will has more than one page, you sign every page.
- Changes made after you have signed must be signed and witnessed in the same way.
Choose your witnesses carefully. A witness, the person who writes out the will, or someone who signs it for you, and their spouses, generally cannot inherit under it or be named as executor, trustee or guardian.
What is a trust?
A trust lets people you choose look after money for your family, for example for children who are too young to manage it themselves. It holds assets for beneficiaries, managed by trustees under a trust deed or a will.
- A testamentary trust is set up in your will and starts when you die. It is often used to manage money for children until an age you choose.
- An inter vivos trust, or family trust, is set up during your lifetime.
Trustees need written authority, called letters of authority, from the Master before they can act. They must also keep a record of the trust’s beneficial owners and lodge it with the Master. Trusts cost money to set up and run, and have their own tax rules, so they suit some situations but not all.
Things to know
- Keep the original safe, and tell your executor where it is. The Master needs the original.
- Update it when your life changes, for example after a marriage, a divorce, having children, buying a home or moving abroad. Assets in another country may need a will there too.
- Drafting and safe keeping. Attorneys, banks, trust companies and some financial planners draft wills and keep originals safe. We arrange wills through our attorney partners.
Who it suits
Every adult needs a will. It matters most if you have children, a spouse or partner, property, a business or assets in more than one country.