One of the most difficult jobs as a Financial Advisor is to get your customers to agree to do a Will. Some take life cover and they have young children and they don’t understand that in the absence of a Will, the proceeds of the life cover could pay out to a relative that might end up using the funds for nice cars, nice holidays, home renovations, etc…  Their children could end up financially destitute despite the fact that they had life cover. Below are the key reasons why I encourage all of us to have a Will

  1. The drafting of a Will would highlight any liquidity shortfalls. As an example, your Financial Advisor must ensure that you have sufficient liquid cash to pay all estate expenses  e.g. Executors fees, Estate Duty where applicable, capital gains tax, etc…
  2. A Will can also help to ensure that you have provided sufficient funds for the education and varsity fees of your children, should you die while your kids are still at school / varsity.
  3. You can name the guardian for your children in a Will. While parents of a child are the natural guardians, you might not necessarily want the father of your child to be a guardian as an example. As we all know, there are many parents out there who do not take any responsibility for their children – think Khumbulekhaya. We even have cases of parents abusing their own children so drafting a Will would enable you to name the appropriate guardian for your children. It is also advisable to speak to the people that you want to take the guardianship of your children to eliminate any surprises should you indeed die untimely
  4.  A Testamentary Trust is created through a Will. The testamentary trust, created on death, will cater for minors or children with special needs. It can even cater for those family members who cannot handle money, are financially irresponsible, remember the Prodigal son 
  5. Through the testamentary trust, you can stipulate how the money should be used to avoid having your money used to fund the lifestyle of the guardian. Many parents would like the funds to be used to pay for school and varsity fees of their children and you can state this in the Will
  6. You can use the Will to place a restriction that the inheritance of children can be excluded from their current or future marital regimes. This would protect your child’s inheritance should they marry in community of property and their spouse is insolvent
  7. A will can create conditional inheritance e.g. your children will inherit upon graduating or your spouse will receive an inheritance until s/he is remarried in the future
  8. You can also use a Will to provide certain people with limited rights. As an example, you might want your Aunty to stay in your home, should you die before her but you do NOT want her to inherit the house. So you can state this in your Will and still name the person that you want to inherit the house in the same Will. They would only inherit the house after your Aunty has passed on
  9. As shown in the last article, you can protect your partner that you are cohabiting with by living them an inheritance through the Will otherwise they would not inherit if you die intestate

For more details on Wills, read Chapter 9 of my book From Debt to Riches: Steps to Financial Success

We draft Wills FREE for our customers ONLY so if you want us to draft a Will for you then you must appoint us as your Financial Advisor