- Last will & testament
- When to update your will
- Trusts
- How trusts work
Protect your loved ones’ legacy
Your last will and testament are formal written documents of your intentions when you pass away. It provides guidelines for the distribution of your assets in your estate so that you can take care of your loved ones when you are no longer there.
In South Africa, there are strict requirements for drafting a will. Dying without a valid will means that your loved ones may not benefit from your estate, and they could be disinherited if they are not catered for in terms of the intestate laws (that is, laws pertaining to dying without a valid will).
When to update your will
Similar to changing your financial plan when life-changing events occur, it is equally, if not more, important to update your will when any significant life events occur.
Birth of a child
Marriage
Divorce
Death
Take care of your family’s needs
- Take care of your family’s needs
What is a trust?
A trust supports dependants — like minors or those unable to manage finances — and protects assets like property or shares from personal tax. But it must be set up carefully to avoid unnecessary costs.
How does a trust work?
A trust begins when a founder transfers assets into it to grow and protect wealth for chosen beneficiaries. Independent trustees manage these assets according to the trust deed, which can be updated with their approval to serve the beneficiaries’ best interests.
When to use a trust
Use a trust to secure the future of your loved ones, and to preserve and protect growth assets — like property or shares — for building generational wealth.
Testamentary trusts and inter vivos trusts
A testamentary trust is created through a will and only comes into effect after the death of the founder. It’s designed to manage and protect assets for beneficiaries who may not be ready or able to handle them – like minor children or individuals with disabilities – and typically ends when certain conditions are met, such as the beneficiary reaching a specific age.
In contrast, an inter vivos trust is established during the founder’s lifetime and becomes active immediately. It serves purposes like asset protection and estate planning. These trusts can be revocable, allowing changes during the founder’s life but keeping assets in their estate, or irrevocable, offering stronger protection and estate duty benefits by removing assets from the founder’s control. Inter vivos trusts can continue across generations.
Should you want more information on the different trusts, please reach out to your financial advisor.
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