Making sure you have a valid, executable will is arguably the most important way to ensure your assets are distributed as you intend after your death. Another estate-planning tool that is often used to protect assets both during and after your lifetime is a trust. However, the drafting process is often misunderstood, mostly because of a lack of adequate information or failure to adhere to legal requirements.

As the famous saying goes ‘when we know better, we do better’. That’s why it is so important to ensure you keep your adviser informed about all the aspects of your life that will affect your finances, now and in the future, so we can consider these when drawing up wills and setting up new trusts. 

What makes your will valid?

It is important to have a valid will to ensure that your wishes are carried out after your death and your loved ones benefit from your estate. 

The role of trusts in estate planning

Trusts can be complex. However, they remain an effective estate-planning tool, especially when you are looking to ensure intergenerational transfer of your wealth. When your wealth is held in a fully discretionary trust, it allows for flexibility, continuity of assets on your death, ease of transfer of wealth, and protection of vulnerable family members.

Establishing an inter vivos trust during your lifetime and transferring the ownership of assets to this trust (during your lifetime) means that your wealth is protected while you are still alive and ensures that your beneficiaries benefit after you pass away.

Overall benefits of having a will or a trust

We all work hard and strive to make money so we can live a comfortable life. Ultimately, we also want to provide the same comfort for our loved ones. Trusts and wills become your voice after you pass away, ensuring that your wealth devolves as you intend. It is therefore important to plan and make financial decisions for both during and after your lifetime. 

Important documents
 

• Structure and transfer your wealth – find out more about how we can help you with a sound plan to protect the financial future of your loved ones.
  
  
• Estate planning overview  – what it involves, why it’s important and practical tips to help your loved ones.
  
  
• Asset ownership guide – structuring the legal ownership of your South African and international assets.
  
  
• Estate planning 101 – understand the estate administration process.

Want to know more?

• Contact your wealth manager or call us on 0800 111 263.
• You can also submit a call-back request to let us know the best time to call you.