Johannesburg: Financial Planning Week 3 – 7 October.

The Financial Planning Institute of Southern Africa (FPI) is proud to announce Financial Planning Week (FPW) 2022, an ongoing annual consumer initiative organised by the FPI to make financial planning the basis of every South African’s life.

The objective is to promote Financial Planning for All

The activities for the week will include a Facebook live session covering the following topics:

• Children and money
• Managing risk in your life
• Managing your finances in tough times
• Investment planning – Global vs Local and everything in-between
• Benefits of working with a financial professional

Contact FPIMyMoney123™ on mymoney123@fpi.co.za to make a booking for a free financial planning session. 

Apply to be a participant during the week on the following link: https://fpimymoney123.co.za/wp-content/uploads/2022/08/FPW_form_final-version.pdf

Download My Money 123 Tool Kit 

https://fpimymoney123.co.za/wp-content/uploads/2022/09/Financial-Planning-Toolkit-5.pdf

Download 10 Essential Money Conversations for Couples

https://fpimymoney123.co.za/wp-content/uploads/2022/09/10-ESSENTIAL-MONEY-CONVERSATIONS-FOR-COUPLES64.pdf

Make sure your will is valid

You need to be at least 16 years and capable to draft a will.

The will needs to be signed in your presence by two witnesses at least 14 years old who have no benefit in the will.

“If you die without a valid will, your assets will be distributed according to the Intestate Succession Act. This may result in your assets ending up with relatives whom you did not really want to inherit. The winding up of your estate could also take longer at a bigger cost.

Nominate Beneficiaries where you can

Living annuities, endowments, tax-free savings accounts and life assurance policies need the appointment of beneficiaries. If you appoint minors the proceeds will be passed onto the legal guardian.These policies will be treated outside the estate and avoid executor fees.

Retirement annuities, pension and provident funds and preservation funds are dealt with by the trustees of these funds. Whilst you should nominate beneficiaries the trustees will consider all dependents before determining who is entitled to the proceeds. 

Carefully consider a testamentary trust

If you leave assets to minor children who do not have a legal guardian, they may end up in the Guardians Fund until the children reach the age of 18. So it is important to nominate a legal guardian.

You cannot nominate beneficiaries for unit trusts and cash in bank accounts. So these investments will need to be dealt with in the will. If you want your minor children to inherit these and other assets you can bequest a testamentary trust to be set up for their maintenance and future possession of the residue at a specified age. 

Consider this age carefully as inheriting a large sum of money at an earlier age questions how responsible the child will be with the proceeds.

The nominated guardian will claim from the trust on behalf of the children for their lifestyle needs up to the nominated age when they will be paid the residue.

Trusts come with costs which should be carefully considered against the value of the assets you allocate to them.

We have just entered National Wills Week and hopefully will  achieve a much needed awareness of the importance of having a will in place. Even more importantly, to ensure that your will is valid……

An invalid will can lead to unnecessary delays and costs when it comes to winding up your estate.The problem worsens as frustrated beneficiaries and angry members of the family have to deal with the lengthy process of dying “Intestate.” That is without a valid will. Executing an estate is so much easier if the will is prepared properly.

Here are some important points to ensure that your will is valid.

1. You must be 16 years or older and mentally capable to make a valid will.
2. You must sign your will at the end of the document. If it consists of more than one page then it should be signed at the end of each page.
3. You should sign your will in the presence of two witnesses over the age of 14 who are competent to give evidence in a court of law.
4. The witnesses must not be benefit in terms of the will. So they may not be beneficiaries, executors or trustees.
5. The witnesses must sign the will in your presence after you have signed.
6. The will must be dated to ensure that the executor of your estate has a clear understanding of the latest will.

The time that it takes to ensure that you have a valid will is minuscule compared to the time and effort it takes to wind up an estate without a valid will.

Make sure that your will is valid. Your beneficiaries depend on it….