When you hear the phrase “estate planning”, you might think of millionaires deciding what do with all their properties. In reality, estate planning is for everyone. It involves determining how your assets – be it the contents of your bank account or the car you’re driving – are managed and distributed in the event of your passing. Naturally, one of the most important aspects of estate planning is creating a will. It ensures your assets are divided up amongst those you want to inherit them.

What Happens If You Die Without A Will?

In South Africa, if you pass away without a will, there are laws in place that will allow your estate to be divided among remaining relatives. Still, without a will, it’s not going to be easy. Some of the challenges include waiting up to years for an appropriate executor to be appointed, mounting fees and causing frustration and fights amongst your loved ones. Also, without a will, you can’t nominate a guardian for your minor children if both parents pass away at the same time, nor can you distribute offshore assets. In short, you really want to have a will.

Do I Need A Will If I Have Life Insurance?

Yes, even if you have life insurance, having a will is still important. While life insurance can provide a lot of financial support for your loved ones after your passing, it doesn't cover all aspects of estate planning.

While life insurance payouts are a lump sum directed to the beneficiaries you've named in your policy, a will allows you to distribute other assets, such as property, personal belongings and money in the bank.

Having a will also allow you to address non-financial matters, such as naming guardians for any minor children, stating certain wishes and making sure your sentimental or valuable items go to specific people. This way, you can ensure your daughter receives that precious family ring versus an executor that wasn’t of your choosing deciding to give it to your least favourite aunt.

 

Did You Know:

You can apply for a will online with MiWayLife here. You can now also take out life cover with us online in a few simple steps. No calls and no agents! Make sure to take care of those you love today by buying MiWayLife cover online.