Nearly 40,000 legacies secured this Wills Month

During Wills Month 2024, Capital Legacy was able to place 39,566 signed wills in safe custody – each of those nearly 40,000 signatures representing a legacy secured, inheritances protected, loved ones provided for, and distribution of assets and final wishes made clear.

It all starts with the will

A last will and testament is the cornerstone of estate planning, taking care of loved ones left behind and making legacies last from one generation to the next. 

‘Even so, a will is often the most neglected part of financial advice,’ says Lesley Coetzee, Executive Manager of Distribution at Capital Legacy, ‘while in reality it is an absolutely critical piece of the personal-finance puzzle. Thankfully, we are making strides at improving this picture through continuous consumer education and working with thousands of financial advisors across the country, who support our mission of making the loss of loved ones easier and informing South Africans about the importance of having valid wills in place.’ 

Why do so few South Africans have wills?

On an individual basis, surveys continue to show that procrastination or perceived lack of time to be the main reason why many South Africans don’t get around to drafting their wills. The founders of Capital Legacy realised that the complexity of will consultations also discourage many financial advisors from assisting clients with drafting their wills. This led to the ‘You refer, We fulfil’ model where a financial advisor whose client wants to draft a will, refers that client to Capital Legacy and an expert Testamentary Consultant meets with them to provide a well-drafted will. These consultations offer holistic will-drafting services that consider each set of personal circumstances and delivers meaningful advice by way of calculations of actual costs associated with that individual passing away. Testamentary Consultants can also make sure wills are signed and witnessed correctly, and placed in safe custody, housed in Capital Legacy’s fire- and water-resistant vault at no cost to the client. Clients who don’t have a financial advisor can contact Capital Legacy directly for a consultation.

Who can ‘afford’ to die?

Very few of us understand the intricacies of winding up a deceased estate, the complexities of the admin involved, and least of all the unexpected costs associated with dying.

‘The stories we could tell about challenges with NaTIS documents when transferring vehicle ownership, the tricky details of tax abatements, the nuances of usufruct clauses… the list is long!’ says Coetzee. 

‘There are also heart-warming, rewarding stories of our solutions making a positive difference to someone’s life, for example our Estate Overheads Protector keeping the Wi-Fi on at home, or paying for a school trip or a cricket tour, ensuring small semblances of normality at emotionally difficult times in people’s lives,’ she adds.

This is when a well-drafted will makes a world of difference, and why it is one of life’s most important documents.

Considerations when drafting a will

The main considerations to bear in mind when it comes to wills and estate administration include:

• How are you married? (Marriage regime plays an important role in how an estate is distributed.)
• Do you have minor children? (In South Africa, children under 18 can’t inherit directly, so you need to consider creating a testamentary trust in the will, and nominating trustees, and preferred guardians to look after minors.)
• The costs associated with dying (executors fees, Master’s fees, trust fees, other legal costs).
• What assets and liabilities are there?
• Do you own property? If so, how many? (Deceased estate property transfers are more complicated than regular transfers and can cause significant delays in the estate administration process.)
• Have you chosen an executor? (The family lawyer, a family member who is a lawyer, a trusted uncle, a favourite aunt… not always the best choices; the role of executorship requires a specialised professional skill set, including financial, tax, legal, communication, negotiation and other expertise.)
• Do you own a firearm? (This is one of the top reasons for delays in winding up deceased estates.)
• Are there any offshore assets or business interests? If so, a worldwide or offshore will is required.

Doing fiduciary differently

‘I’ve personally taken calls from widows who have just lost their husbands and don’t know where to start or what to do next,’ says Coetzee. ‘In these circumstances, I can confidently assure them that they are in good hands and that a dedicated estate consultant will meet with them in person to explain the process and what to expect.’

Capital Legacy realised that an email or a phone call is not enough when someone has experienced loss. It has created industry-leading processes that make the experience less overwhelming for dependents and heirs, including a custom-built online portal where the progress and status of a deceased estate can be tracked in real time.

‘If you took advantage of Wills Month and got your will in place, that’s fantastic. If you have not yet done so – I encourage you to get it sorted, it only requires an hour of your time. When that dreaded call comes through of a loved one passing, the family should know that the deceased’s wishes have been clearly outlined, and their legacy protected by way of a well-drafted last will and testament,’ Coetzee concludes.