Dying without a will has some serious implications for the loved ones that you leave behind. Especially if they are minors under the age of 18.. Many South Africans do not have a will and this means that their estates will fall under the Interstate Succession Act.
The consequences are such, that the estate will be cashed in and the money placed in the Guardian Fund controlled by the Mater of the Supreme Court. This can have huge logistical, tax, administrative and financial consequences.
Death is traumatic enough for those that you leave behind and not having your financial affairs in order further compounds the problem.
Here are some realities that will take place if you die without a valid will.Your assets get cashed in
Without a will your assets get sold at whatever price at the time. Perhaps you would have been better off keeping the house, the time share, and the car for the children. This would be specified in your will but without it the path is set. Cash in and the kids will have to live somewhere else.
One Stroke for all Folks
The Trustees of Guardian Fund will decide where the money gets invested. This will take away any alternative financial opportunities that may be available to improve the returns on the investment. So your children will not benefit from objective and independent advice which may be more appropriate for them.
Loss of control
Letting the law dictate how your hard earned assets are distributed puts your children at risk. The court will also decide who the guardian of your children should be. The children whats left in the Guardian Fund when the turn 18 years old.. This could be a considerably large amount which they probably won’t know how to manage properly at such a young age. Your will could specify a far better age in a will which probably will result in their inheritance lasting a lot longer.
Spending a little time ensuring that you have a will in place can make a huge difference to the future of your loved ones left behind.