The importance of setting up a will

Wills are something we don't like to think about. We don't like to face the reality that in a moment, our lives can be cut short. We especially don't like facing what that might mean for loved ones. Should you die, a will helps to ensure that your family's needs are met according to your wishes. Die without one, and the state decides who gets what, without any regard to your wishes or family's needs.

Lynne Serfontein, Fiduciary Services Manager at FedGroup, looks at the benefits of having a will and what should be considered before drawing one up.

Did you know, approximately only 10% of South Africans have a will? While the average South African is prepared to spend a couple of hundred rand for a night out on the town, they are not prepared to pay the equivalent to have a will drafted.

Benefits of a will:

* Choosing your heirs. Without a will, the Law of Intestate Succession will determine your heirs. * Nominating an executor. When you draw up a will, you can nominate a person or company whom you trust as executor. * Choosing a guardian for your minor children. This allows you to nominate a person who has the best interest of your children at heart. * Setting up a trust to protect the inheritances of your spouse and children.

Critical considerations:

* Plan your will to be as straightforward as possible. * Should circumstances demand a more complicated will, get expert assistance. * Under no circumstances is it advisable to draw up your own will, unless of course, you are an expert. * Make sure that your will is feasible. * Be practical in the distribution of your assets, remember it costs money to wind up your estate, do not give each and every asset away, allow some cash to meet administration fees and any possible final claim from SARS, not to mention your funeral bill. * Where possible, avoid commanding directives in your will. * Make sure that you understand the consequences of your will. * Nominate a guardian in your will if you have minor children. * Make provision for any maintenance obligations that you may have in terms of a divorce order. * It is advisable not to describe funeral arrangements in your will.

Expert help

There is more to a will than buying one from the local stationers and filling it out. It is important that you consult a reputable financial services provider to prepare a will for you. After all, a will is probably the most important document that you will ever sign and represents financial peace of mind to those you leave behind.