Dying without a will has some severe 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 substantial 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’s what happens to your estate if your children are left without a 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 timeshare, 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.
No control over children’s age to take over their inheritance
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 and the children will be left up to the Guardian Fund when they 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. Having a will in place specifying a more responsible age ( say 25) for the children to take over their inheritance will encourage better decision-making and appreciation of their windfall.
Spending a little time ensuring that you have a will in place can make a massive difference to the future of the loved ones you leave behind.