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.