You ask it, we have it answered!
What happens if a person dies without a will in South Africa?
Estate planning is a crucial part of your personal finance journey, and at the heart of it lies your last will and testament.
But what happens if a person dies without a will in South Africa? Without a will – or even with an invalid or outdated will – the law of intestate succession will apply, according to the Intestate Succession Act 81 of 1987. This means your estate will be divided according to a set formula, based on which relatives are alive at the time of your passing.
If you die without a will and have no-one to inherit in terms of the Act, the money in your deceased estate will be placed in the government's Guardians Fund. If no heirs come forward to claim the money within 30 years, the funds will be forfeited to the state.
With no will, there would also have been no appointment of an executor. The intestate heirs may nominate a person to be appointed as executor, however, the final decision lies with the Master of the High Court.
One of the major consequences of dying without a will concerns guardianship for minor children. Your wishes might not be considered and the children might be placed in the care of someone you didn’t intend them to be placed with if you pass away without a will. Even the children’s inheritance will be at risk. You might have wanted to place the children’s inheritances into a trust, for example, to be paid out only when they reach age 25. However, without a will the inheritance will be paid into the government's Guardian Fund and could take years to pay out to the children.
Apart from creating inheritance pitfalls, there are many other consequences of dying without a will. The importance of having a valid and updated will cannot be overestimated. This includes:
Avoid family disputes: A well-drafted will can prevent family infighting and ensure that each beneficiary knows precisely what they will inherit.
Efficient estate administration: Nominating an executor in your will streamlines the estate administration process and ensures that someone you trust manages your affairs upon your passing.
You should also consider the peace of mind that a will gives you, and how it serves as a vital legacy for your loved ones, sparing them unnecessary worry and financial hardship in the future.
We offer complimentary will-drafting consultations to help you create a comprehensive will tailored to your unique circumstances. Speak to your financial adviser or contact us to secure your legacy.