Estate planning will ease the burden on your family after your death and will allow for the process of the administration of your estate to be done as efficiently as possible. The basics of estate planning should be done by every person. This includes signing a Will, planning for the financial needs of your family immediately after your death and ensuring that all the documents that you family could need for the administration of your estate are easily accessible upon your death.
If you do not sign a Will, your estate will devolve in terms of the rules of intestate succession. This could mean that someone who you would have liked to bequeath a specific asset to, will not inherit that asset from you. For example there may be a family member who is financially dependent on you and whom you would like to provide for after your death but they will not necessarily inherit anything from you if your estate had to devolve in terms of the rules of intestate succession.
Without a Will, there is no nomination of an executor by you. This will result in the nomination of an executor having to be obtained from your closest family members after your death before it can be lodged with the Master of the High Court. This could result in possible delays. Without a Will, you will not have directed that the appointed executor does not have to provide security to the Master of the High Court. This may mean that the Master’s Office could demand of such a person to first take out a bond of security, with high premiums, to provide security to the Master of the High Court resulting in unnecessary delays and costs.
When you die, your nominated executor will complete the necessary forms to report the estate with the Master of the High Court. The Master’s Office may thereafter issue a letter of executorship, to the nominated executor, appointing them as such. The executor may only then act in that capacity. While the application for the appointment of executor is with the Master’s Office your surviving family members may be without the necessary cash flow to meet their ongoing monthly expenses. This may be particularly true if you are the breadwinner, if the only bank account of the family is in your name, or if you are married in community of property where both spouses’ accounts may be frozen. This is due to the fact that when the bank is informed of your death or learns of it, they will freeze your bank accounts. They will only transfer funds out of the bank accounts once the executor is appointed and the executor gives them instructions to do so.
After the Letters of Executorship have been issued, the process of the administration of the deceased estate can start. This can be quite a tedious process and can in some cases take a long time to complete. Everything that is in the deceased’s name will have to be transferred out of their name and into the name of their heirs. All the deceased’s bank accounts and other accounts would need to be closed etc. In some cases the family might not be aware of where all the documentation is that the executor may require to finalise your estate. This can place unnecessary strain on your family while they try and locate all the information that the executor requires and could delay the administration process.
We have created a list of documents and information that will help you to put together all the necessary information and documents your family and/or executor could need after your death. You would need to ensure that these documents and information is updated frequently and that your family and/or executor knows where to find this in the case of your death. This will ensure that your family does not have to endure any unnecessary stress and the executor will be able to deal with the administration of your estate in a more time efficient manner.
These are just a few ways in which proper estate planning can help ease possible financial and other problems that your family may be faced with after your death. Your family will appreciate the time and effort you put into this when you are no longer here.
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)