Funeral cover is common. Wills are not, and families can pay the price.

It’s a strange fact of South African life that an estimated 75% of us have funeral cover, yet most don’t think about what happens to our possessions, savings and other assets after we are gone.

This flaw in our personal planning is highlighted by statistics from the Department of Justice, which show that about eight out of ten of us die without leaving a valid will, says John Manyike, Head of Financial Education at Old Mutual.

“Tragically, many of us carefully plan our funerals, yet leave behind homes on mortgage, savings and possessions that can become the cause of family infighting and disputes even if a will is in place, and it is clear about who gets what assets. Without a will, the Intestate Succession Act 81 of 1987 applies, and family members may not receive what the deceased may have wished for without documenting it in a will.”

Once the legal process begins, an executor appointed by the Master of the High Court administers the estate according to the Intestate Succession Act. For example, if the deceased leaves a spouse and children, the spouse receives a child’s share or R250 000, whichever is greater. If there is no spouse or children, other family members may inherit.

This can become particularly complicated with blended families, estranged relatives, undocumented customary marriages, unmarried partners, or other family circumstances that do not reflect the deceased’s wishes.

“There is no negotiation. Even saying that there is no conflict within the family, and everyone has agreed on how the assets should be divided, will not help. The executor applies the law and distributes the estate according to what the legislation provides. This can mean that someone who has been estranged for years inherits alongside, or instead of, the people the deceased may have wished to bequeath some assets,” says Manyike.

“Preparing for death goes far beyond a funeral. The main focus should be on making things easier for those left behind. Ensuring the right people receive what you want them to have means no arguments, no family disputes, and fonder memories of the person who has passed within the family. People left behind, therefore, have less to worry about while mourning a loss.”

Many people believe a will is unnecessary unless they are wealthy or older. But even those with few assets can benefit from having one, as it makes distribution easier and helps ensure that the right people receive what is intended.

Even young people building an asset base will have bank accounts, a car and possibly a few investments that need to be allocated. A will can also let a testator specify the type of funeral they want and ensure the costs are covered.

A will does not necessarily have to be expensive. Many attorneys, banks and insurance companies, including Old Mutual, offer free will-drafting services. They may also offer professionals to administer the estate and ensure the will’s terms are carried out.

“It’s at this point that people always ask, ‘ where’s the catch?’, “comments John.

When financial institutions or legal firms offer to draft a will at no cost, the appointed executor in the document will be the company or person who helped draft the will.  Fees for this service follow statutory requirements, so they are the same as those paid to any independent executor, including a family member.

The services required of an executor from a company are the same: to wrap up a deceased person's affairs, including settling debts, closing accounts, clearing taxes, and distributing assets.

“Estate administration requires significant legal expertise, time, and administrative work, making the fees justifiable for the effort involved,” says John.

Writing your own will should be undertaken with caution. Several formal requirements must be met, including the testator signing the document and two competent witnesses attesting to the signature. If the will spans multiple pages, the testator must sign each page.

Choosing witnesses requires care, as someone who signs as a witness may lose their right to inherit under the will they witness. The safest option is to select independent witnesses with no interest in the will's contents.

 Downloading templates or copying a document without understanding the formal requirements can lead to unforeseen complications when the document is most needed.

 “Whether a will is free or not isn’t important. What is vital is that it is properly drafted, meets the requirements of the person having it legally drawn up, and is correctly executed when the time comes.”

“Anyone having a will drawn up should understand what they are agreeing to, including who will administer the estate, what fees may apply, and whether additional services or costs are associated with appointing a particular executor,” says Manyike.

Executors may be legal professionals, bankers in specialised trust divisions, or trusted family members, surviving spouses, or adult children. Regardless of their background, they must be financially literate, organised, patient, and have the time to take on what can be a time-consuming task.

The Master of the High Court must formally approve executors in South Africa. They may charge for their services in accordance with a tariff set by law. Executors therefore cannot simply decide what to charge for their services.

“Annual Wills Week is a reminder to get our personal affairs in order. It’s a good time to review an existing will and check that it still reflects your wishes. Marriage, divorce, children, deaths in the family, property purchases and other significant changes may mean it needs updating.”

“Make sure your will is valid and properly witnessed, and let someone you trust know where it can be found. A will that nobody can find defeats its purpose.”  

“Estate planning is not about how wealthy you are; it is about caring for the people and things that matter to you. Nothing says this better than ensuring that when your family needs you most, your will is there to help and guide them,” says Manyike.