How to Keep Your Will
Content
The Complete Guide to making your Will Why make a Will? Making a Will is planning for the future, and ensuring that your family and loved ones will be cared for when you are no longer there to protect them yourself. It is not a morbid or depressing task - on the contrary, knowing your possessions will be divided up according to your wishes, that your affairs will be handled by someone you know and trust, and that your children will have a loving guardian if anything were to happen to you and your spouse, brings great peace of mind. Many married people think there is no need to make a Will, because when they die everything they own will automatically go to their partner. This isn’t necessarily the case. There have been examples of family homes having to be sold to pay off long lost relatives who are legally entitled to a share. Others think they have nothing to leave - but if you were to take into account the value of your home, furniture and personal effects, your car, bank accounts and insurance policies, the total could be surprisingly high. Even if you have no family of your own, making a Will is still important, because if you die without one, everything you leave behind could go to the State. Surely it’s better to surprise a friend or help a charity which will remember you with affection for ever after, than for your money to end up in the Receiver’s pocket! What happens if you don’t make a Will? • Your estate will be divided in strict accordance with the inflexible laws of intestacy, which may not be in the best interests of your family. • You will have no say in how precious possessions are distributed, or who should benefit.
• Your family will be subjected to additional worry at an already stressful and sad time, as they try to decide what you would have wanted. • Your affairs can take years to sort out. A search for the non-existent Will first has to be made before intestacy is accepted. Then all living relatives have to be traced. In the meantime, no-one receives any money – which can cause great hardship to those you leave behind. • Only blood relatives and married partners can inherit. If you have a close friend or a favourite charity, they will not receive a cent unless you have made provision for them in a valid Will. • If you are separated, but not divorced, your former partner could receive almost all your money and property. Another good reason for making a Will is that it gives you a chance to make other kinds of decisions. Would you prefer your bodily remains to be cremated or buried? Do you want to donate your organs to help someone else? To whom would you prefer to entrust the task of sorting out your affairs (the executor/s)? Who will take care of your children if both you and your partner die (guardian/s)? And what about your pets? Will someone take them in, or will you need to make provision for them in your Will? How to make your Will Legally, you are allowed to write your own Will, but it is far better to have such an important document drawn up by a suitably qualified person – such as an attorney, auditor, your banker or a trust company – to ensure it is correctly worded and witnessed. Banks and trust companies usually charge a small fee for drawing up a Will, provided they are named as executors. Before you make the appointment to have your Will drawn up, there’s a certain amount of preparation to be done. You will need details of the value of your estate, names and addresses of the executors you have chosen (ask their permission first!) and the people to whom you wish
to leave gifts (bequests), including charitable organisations. Use the form below to calculate the value of your estate: Assets Home Other property Household contents Furniture/Antiques Jewellery Car/caravan Savings and cash Stocks and shares Other investments Pension benefits Life Assurance Total Assets Liabilities Mortgage Bank loans Hire purchase Bank overdraft Credit Cards Tax owed Total Liabilities Value of Estate R R R R R R R R R R R R R R R R R R R R
What is a Bequest? A bequest or legacy is simply a gift in your Will – a memento or sum of money you want to leave to someone, your Church, or a charity you have loyally supported. Broadly speaking, there are two main types of bequests:
• a specific amount of money, including the proceeds of a life assurance policy, or a particular piece of property, and, • the residue – whatever remains of your estate once all the funeral expenses, estate duty and specific bequests have been paid. You can bequeath the entire residue to a single beneficiary, or apportion it among several. The advantage of the latter is that the bequest automatically keeps pace with inflation and any changes in your circumstances. If you have decided to include the South African National Council for the Blind among your beneficiaries, your attorney may find the wording below helpful: SPECIFIC BEQUEST I bequeath to the SOUTH AFRICAN NATIONAL COUNCIL FOR THE BLIND, 514 White Street, Baileys Muckleneuk, Pretoria free of all tax the sum of R..... (or the specific item/s as the case may be) and I further direct that the receipt of their Treasurer or other proper officer shall be a full and sufficient discharge. RESIDUAL BEQUEST Subject to the payment of my debts, funeral and testamentary expenses, I give ...... (insert the word ‘all’ or a percentage share) the residue of my estate not otherwise disposed of by this, my Will, to the SOUTH AFRICAN NATIONAL COUNCIL FOR THE BLIND, 514 White Street, Baileys Muckleneuk, Pretoria and I further direct that the receipt of their Treasurer or other proper officer shall be a full and sufficient discharge. Choosing an executor Your executor ensures the instructions in your Will are carried out, and may also be a beneficiary of the Will. Obviously you must ask the person first to make sure they’re willing, and it’s usual to name a second executor in case anything happens to the first. A husband usually appoints his wife, and a wife her
husband. It’s sensible to name someone younger – a grown-up son or daughter for example, as a second executor. Asking a professional to act as one of the executors will take the burden away from your family, but you will have to pay for their services from the residue of your estate. Your witnesses You need two people over the age of 18 and of sound mind to witness your Will and neither they, nor their marriage partners may benefit from the Will. You and the two witnesses must all sign the Will together, in each other’s presence. Your beneficiaries Beneficiaries are the people you have named to receive gifts. Be sure to clearly identify them with a full name, ID number, occupation and full address, which makes them easier to locate and identify. If one or more of your beneficiaries predeceases you, the money or item you left that person is added to the residue of your estate, and dealt with in the manner you’ve willed. However, if any of your children to whom you have left a legacy die before you, then their children will automatically inherit in equal shares. What about arrangements for my funeral? You can express a preference in your Will for burial or cremation and include specific instructions such as, ‘I direct that my ashes are scattered at sea.’ These days many people feel that in death they would like to provide life for others and so agree to donate organs and tissue to be used to save lives. Others donate their bodies to be used for the advancement of medicine. If you want to donate part or all of your body for medical or scientific purposes, you should include a paragraph to this effect in your Will.
Where to keep your Will There’s no point in writing a Will if it cannot be found. You will probably wish to keep the original Will with your attorney or at your bank, but you should also have a copy at home so that you can remind yourself of its contents from time to time and decide whether you need to make any changes. It’s also advisable to give your executor/s a copy of the Will, or at least make sure that he/she/they are aware of the contents. If you make copies of your Will, write ‘copy’ on each of the copies, but do not write ‘original’ on the original. How often should you update your Will? You will need to change your Will if you move to another country, get married or divorced, sell assets mentioned in the Will, or if one or more of your heirs or executors die. If your estate is now worth more (perhaps you have received an inheritance, or the value of your house has increased), you may become liable for estate duty. By making certain changes to your Will, you may be able to reduce the amount you have to pay. If the changes are substantial, you may wish to make a new Will. But in many cases, all that is required is a simple codicil. Your attorney, auditor or financial advisor can help you with this, or, if it is fairly straightforward, you may prefer to take care of it yourself. How to make a codicil You can make as many codicils as you like, but if there are several changes it may be better to make a new Will. Each codicil must be signed by two witnesses in the same way as your Will, although they do not have to be the same people who witnessed your Will. Neither they, nor their marriage partners, may be beneficiaries of your Will
or the codicil. Never pin, staple or clip a codicil to your Will. Simply place it in an envelope with your Will and mark the outside clearly. Remember to tell the executor of your Will that you have added a codicil, and where it is kept. How making a bequest can reduce estate duty If the total value of your assets at the time of your death amounts to over R3,5 million, then you will become liable for the payment of estate duty at the rate of 20%*. However, all gifts made to charities in your Will are free of tax. In practice, that means if you make a gift to the South African National Council for the Blind in your Will, the value of that gift is deducted from your estate before the amount of estate duty is calculated. If your gift reduces the value of everything you have left to R3 500 000 or less, then no estate duty will be payable at all. e.g.: Value of estate R1 600 000 Rebate R1 500 000 Bequest to National Council R1 100 000 Taxable amount nil Tax payable nil Balance for distribution R1 500 000 * Valid as at 2009. How would the South African National Council for the Blind use a bequest from me? By naming the South African National Council for the Blind in your Will, you could be giving a young blind person the chance to lead a useful and independent life. You could help a newly blinded person master the skills of the long white cane; you could provide training for worthwhile jobs as computer operators or telephonists; you could provide assistive devices for blind or partially sighted people. Or you could restore the eyesight of
someone blinded by cataracts. All these precious gifts would cost you nothing during your lifetime. But when you no longer need it, your money will be put to good use to help those who are less fortunate. And you’ll have the pleasure of knowing that your kindness will be remembered for years, perhaps even generations to come, by blind and partially sighted people. As a supporter of the South African National Council for the Blind, you are already playing a part in helping us provide the training, encouragement and financial support needed by the blind community ... as well as essential eye care education and blindness prevention programmes. A gift in your Will can make our partnership last more than a lifetime, and is a lasting memorial to your generosity. If you are kind enough to include the South African National Council for the Blind in your Will, may we ask you to return the enclosed form? There’s no obligation, and of course you may change your mind at a later date, but it will help us with our plans for the future. Vital personal information Full Name Address Telephone Business Address Telephone Date of Birth Place of Birth Identity Number Date of Issue Place of Issue Tax Registration Number
Location of Birth Certificate Location of Marriage/Divorce Certificate Attorney Telephone Doctor Telephone Medical Aid Membership Number Telephone Accountant Telephone Name of Executor Address Telephone Name of Executor Address Telephone Persons to notify in case of emergency Name Address Telephone Name Address Telephone Name Address Telephone Banking Details Bank Account Number Type of Account Bank Account Number Type of Account Bank Account Number Type of Account
Life Assurance Company Policy Number Company Policy Number The information contained in this booklet should not be used as a substitute for proper legal advice. You are advised to consult an attorney, auditor or other qualified professional before drawing up your Will. For further information about leaving a bequest to the S A National Council for the Blind, please contact: Tel. (012) 3461171 or write to PO Box 11149 Hatfield 0028
• Your family will be subjected to additional worry at an already stressful and sad time, as they try to decide what you would have wanted. • Your affairs can take years to sort out. A search for the non-existent Will first has to be made before intestacy is accepted. Then all living relatives have to be traced. In the meantime, no-one receives any money – which can cause great hardship to those you leave behind. • Only blood relatives and married partners can inherit. If you have a close friend or a favourite charity, they will not receive a cent unless you have made provision for them in a valid Will. • If you are separated, but not divorced, your former partner could receive almost all your money and property. Another good reason for making a Will is that it gives you a chance to make other kinds of decisions. Would you prefer your bodily remains to be cremated or buried? Do you want to donate your organs to help someone else? To whom would you prefer to entrust the task of sorting out your affairs (the executor/s)? Who will take care of your children if both you and your partner die (guardian/s)? And what about your pets? Will someone take them in, or will you need to make provision for them in your Will? How to make your Will Legally, you are allowed to write your own Will, but it is far better to have such an important document drawn up by a suitably qualified person – such as an attorney, auditor, your banker or a trust company – to ensure it is correctly worded and witnessed. Banks and trust companies usually charge a small fee for drawing up a Will, provided they are named as executors. Before you make the appointment to have your Will drawn up, there’s a certain amount of preparation to be done. You will need details of the value of your estate, names and addresses of the executors you have chosen (ask their permission first!) and the people to whom you wish
to leave gifts (bequests), including charitable organisations. Use the form below to calculate the value of your estate: Assets Home Other property Household contents Furniture/Antiques Jewellery Car/caravan Savings and cash Stocks and shares Other investments Pension benefits Life Assurance Total Assets Liabilities Mortgage Bank loans Hire purchase Bank overdraft Credit Cards Tax owed Total Liabilities Value of Estate R R R R R R R R R R R R R R R R R R R R
What is a Bequest? A bequest or legacy is simply a gift in your Will – a memento or sum of money you want to leave to someone, your Church, or a charity you have loyally supported. Broadly speaking, there are two main types of bequests:
• a specific amount of money, including the proceeds of a life assurance policy, or a particular piece of property, and, • the residue – whatever remains of your estate once all the funeral expenses, estate duty and specific bequests have been paid. You can bequeath the entire residue to a single beneficiary, or apportion it among several. The advantage of the latter is that the bequest automatically keeps pace with inflation and any changes in your circumstances. If you have decided to include the South African National Council for the Blind among your beneficiaries, your attorney may find the wording below helpful: SPECIFIC BEQUEST I bequeath to the SOUTH AFRICAN NATIONAL COUNCIL FOR THE BLIND, 514 White Street, Baileys Muckleneuk, Pretoria free of all tax the sum of R..... (or the specific item/s as the case may be) and I further direct that the receipt of their Treasurer or other proper officer shall be a full and sufficient discharge. RESIDUAL BEQUEST Subject to the payment of my debts, funeral and testamentary expenses, I give ...... (insert the word ‘all’ or a percentage share) the residue of my estate not otherwise disposed of by this, my Will, to the SOUTH AFRICAN NATIONAL COUNCIL FOR THE BLIND, 514 White Street, Baileys Muckleneuk, Pretoria and I further direct that the receipt of their Treasurer or other proper officer shall be a full and sufficient discharge. Choosing an executor Your executor ensures the instructions in your Will are carried out, and may also be a beneficiary of the Will. Obviously you must ask the person first to make sure they’re willing, and it’s usual to name a second executor in case anything happens to the first. A husband usually appoints his wife, and a wife her
husband. It’s sensible to name someone younger – a grown-up son or daughter for example, as a second executor. Asking a professional to act as one of the executors will take the burden away from your family, but you will have to pay for their services from the residue of your estate. Your witnesses You need two people over the age of 18 and of sound mind to witness your Will and neither they, nor their marriage partners may benefit from the Will. You and the two witnesses must all sign the Will together, in each other’s presence. Your beneficiaries Beneficiaries are the people you have named to receive gifts. Be sure to clearly identify them with a full name, ID number, occupation and full address, which makes them easier to locate and identify. If one or more of your beneficiaries predeceases you, the money or item you left that person is added to the residue of your estate, and dealt with in the manner you’ve willed. However, if any of your children to whom you have left a legacy die before you, then their children will automatically inherit in equal shares. What about arrangements for my funeral? You can express a preference in your Will for burial or cremation and include specific instructions such as, ‘I direct that my ashes are scattered at sea.’ These days many people feel that in death they would like to provide life for others and so agree to donate organs and tissue to be used to save lives. Others donate their bodies to be used for the advancement of medicine. If you want to donate part or all of your body for medical or scientific purposes, you should include a paragraph to this effect in your Will.
Where to keep your Will There’s no point in writing a Will if it cannot be found. You will probably wish to keep the original Will with your attorney or at your bank, but you should also have a copy at home so that you can remind yourself of its contents from time to time and decide whether you need to make any changes. It’s also advisable to give your executor/s a copy of the Will, or at least make sure that he/she/they are aware of the contents. If you make copies of your Will, write ‘copy’ on each of the copies, but do not write ‘original’ on the original. How often should you update your Will? You will need to change your Will if you move to another country, get married or divorced, sell assets mentioned in the Will, or if one or more of your heirs or executors die. If your estate is now worth more (perhaps you have received an inheritance, or the value of your house has increased), you may become liable for estate duty. By making certain changes to your Will, you may be able to reduce the amount you have to pay. If the changes are substantial, you may wish to make a new Will. But in many cases, all that is required is a simple codicil. Your attorney, auditor or financial advisor can help you with this, or, if it is fairly straightforward, you may prefer to take care of it yourself. How to make a codicil You can make as many codicils as you like, but if there are several changes it may be better to make a new Will. Each codicil must be signed by two witnesses in the same way as your Will, although they do not have to be the same people who witnessed your Will. Neither they, nor their marriage partners, may be beneficiaries of your Will
or the codicil. Never pin, staple or clip a codicil to your Will. Simply place it in an envelope with your Will and mark the outside clearly. Remember to tell the executor of your Will that you have added a codicil, and where it is kept. How making a bequest can reduce estate duty If the total value of your assets at the time of your death amounts to over R3,5 million, then you will become liable for the payment of estate duty at the rate of 20%*. However, all gifts made to charities in your Will are free of tax. In practice, that means if you make a gift to the South African National Council for the Blind in your Will, the value of that gift is deducted from your estate before the amount of estate duty is calculated. If your gift reduces the value of everything you have left to R3 500 000 or less, then no estate duty will be payable at all. e.g.: Value of estate R1 600 000 Rebate R1 500 000 Bequest to National Council R1 100 000 Taxable amount nil Tax payable nil Balance for distribution R1 500 000 * Valid as at 2009. How would the South African National Council for the Blind use a bequest from me? By naming the South African National Council for the Blind in your Will, you could be giving a young blind person the chance to lead a useful and independent life. You could help a newly blinded person master the skills of the long white cane; you could provide training for worthwhile jobs as computer operators or telephonists; you could provide assistive devices for blind or partially sighted people. Or you could restore the eyesight of
someone blinded by cataracts. All these precious gifts would cost you nothing during your lifetime. But when you no longer need it, your money will be put to good use to help those who are less fortunate. And you’ll have the pleasure of knowing that your kindness will be remembered for years, perhaps even generations to come, by blind and partially sighted people. As a supporter of the South African National Council for the Blind, you are already playing a part in helping us provide the training, encouragement and financial support needed by the blind community ... as well as essential eye care education and blindness prevention programmes. A gift in your Will can make our partnership last more than a lifetime, and is a lasting memorial to your generosity. If you are kind enough to include the South African National Council for the Blind in your Will, may we ask you to return the enclosed form? There’s no obligation, and of course you may change your mind at a later date, but it will help us with our plans for the future. Vital personal information Full Name Address Telephone Business Address Telephone Date of Birth Place of Birth Identity Number Date of Issue Place of Issue Tax Registration Number
Location of Birth Certificate Location of Marriage/Divorce Certificate Attorney Telephone Doctor Telephone Medical Aid Membership Number Telephone Accountant Telephone Name of Executor Address Telephone Name of Executor Address Telephone Persons to notify in case of emergency Name Address Telephone Name Address Telephone Name Address Telephone Banking Details Bank Account Number Type of Account Bank Account Number Type of Account Bank Account Number Type of Account
Life Assurance Company Policy Number Company Policy Number The information contained in this booklet should not be used as a substitute for proper legal advice. You are advised to consult an attorney, auditor or other qualified professional before drawing up your Will. For further information about leaving a bequest to the S A National Council for the Blind, please contact: Tel. (012) 3461171 or write to PO Box 11149 Hatfield 0028
