In the complex world of estate planning, and insurance, we really need to take a step back and change the starting point of all things planning.
And that fundamental starting point is estate planning. And by estate planning I mean not the will that you got some friends to sign that you purchased from a retail store. A proper, well thought out estate plan, that can be practically executed. However, what does that really look like?
- A deep estate analysis of estate liquidity, (to make sure that what intend to leave for beneficiaries can be practically implemented).
- To make sure that your last wishes can be implemented.
- To make sure that your will is valid, (signed appropriately, constructed practically and executable).
- Finally, to make sure that there are no nasty financial surprises in the incredibly emotional time of losing someone close to you.
Time and time again, I have noted the amount of people that have no will in place or have a valid will that cannot be executed due to liquidity issues. A practical example is you intended to leave your house to your spouse, let’s in this example say that house is worth R2,000,000, practically conveyancing fees, (yes even to your spouse the change of ownership must happen). And let’s assume that your spouse doesn’t have the R100 000 they need to pay the legal fees. The executor would need to sell that house, to get the liquidity in the estate. That means that your last wishes cannot be implemented.
It’s always the small things that catch you out. And can have extremely dramatic consequences. Don’t wait until it’s too late.
