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115. Dying Without a Will
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What happens when life's busy pace means you never get around to making that will? Attorney Jakes Myberg from Waks Attorneys explains the often complicated reality of dying "intestate" - without a valid will - and why it matters more than you might think.
When someone dies without a will in South Africa, three key pieces of legislation take control: the Interstate Succession Act, the Administration of Deceased Estates Act, and the Estate Duty Act. Together, these determine who gets what from your estate - and it's rarely as straightforward as people expect. Your marital status becomes particularly crucial - those married in community of property will see half their estate automatically go to their spouse, but the remaining assets follow a formula that divides inheritance between spouse and children according to precise calculations.
The consequences for families can be significant. Minor children's inheritance must go to the Guardian's Fund, a government-managed account that holds money until they turn 18. While this protects the funds, accessing money for legitimate needs involves bureaucracy, and the administration is often inefficient due to high volumes. After 30 years, unclaimed funds revert to the state - a sobering thought for those who assume their assets will automatically reach the right hands.
Estate duty implications apply whether you have a will or not (with the first R3.5 million exempt), but spouses can effectively transfer assets between them tax-free, potentially preserving more wealth for heirs. Without proper planning, these opportunities may be missed. Even more concerning is what happens with insolvent estates or when financial institutions act as executors, often prioritizing their fees over efficient administration.
The message is clear - creating a valid will isn't just about distributing assets; it's about protecting loved ones from unnecessary complications during an already difficult time. Don't leave your family's future to chance when a simple document can provide clarity and control over your legacy.
Support the show
Please subscribe to our podcast or have a look at our website
www.growthfp.co.za
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By Know Your MoneySend us a text
What happens when life's busy pace means you never get around to making that will? Attorney Jakes Myberg from Waks Attorneys explains the often complicated reality of dying "intestate" - without a valid will - and why it matters more than you might think.
When someone dies without a will in South Africa, three key pieces of legislation take control: the Interstate Succession Act, the Administration of Deceased Estates Act, and the Estate Duty Act. Together, these determine who gets what from your estate - and it's rarely as straightforward as people expect. Your marital status becomes particularly crucial - those married in community of property will see half their estate automatically go to their spouse, but the remaining assets follow a formula that divides inheritance between spouse and children according to precise calculations.
The consequences for families can be significant. Minor children's inheritance must go to the Guardian's Fund, a government-managed account that holds money until they turn 18. While this protects the funds, accessing money for legitimate needs involves bureaucracy, and the administration is often inefficient due to high volumes. After 30 years, unclaimed funds revert to the state - a sobering thought for those who assume their assets will automatically reach the right hands.
Estate duty implications apply whether you have a will or not (with the first R3.5 million exempt), but spouses can effectively transfer assets between them tax-free, potentially preserving more wealth for heirs. Without proper planning, these opportunities may be missed. Even more concerning is what happens with insolvent estates or when financial institutions act as executors, often prioritizing their fees over efficient administration.
The message is clear - creating a valid will isn't just about distributing assets; it's about protecting loved ones from unnecessary complications during an already difficult time. Don't leave your family's future to chance when a simple document can provide clarity and control over your legacy.
Support the show
Please subscribe to our podcast or have a look at our website
www.growthfp.co.za