Wills and Storms

Is your Will up to date?

Today, I want to remind you of the importance of having a WILL.

Many people plan for the future but give no thought to death. 

• If you die, will your family be provided for? 
• Do you have a Will in place?
• If so, when last did you review your Will?

“There is a time for everything, and a season for every activity under the heavens: A time to be born and a time to die, a time to plant and a time to uproot.” (Ecclesiastes 3:1-2)

And while speaking of death, do you know where you will spend eternity? 

Life does not end at the grave. You will continue to live in eternity, either in heaven or in hell. The problem is that sin cuts us off, and we have all missed the mark. But there is Good News. Jesus paid the price on the cross so that all mankind could have eternal life. 

If your eternity is a matter of chance, I ask you to seriously look at your relationship with God…

If want to start or restart your walk with God, click here to pray a simple prayer we have set up for you.

Today, we are going to look at …

• What is a Will?
• What are the consequences of not having a Will?
• How do you set up a valid Will?
• What do you need to consider including in your Will?
• Are your loved ones protected?

1. WHAT IS A WILL?

• A will or testament is a legal declaration by which a person, the testator, gives his/her instructions on how they wish to distribute their wealth and assets on death. 
• The person drafting the Will should name a person (the Executor) to manage their Estate and provide for the transfer of their property (Estate) upon their death.

In a nutshell,

• A Will is a legal document drawn up by an individual in which the person states how his/her estate should be distributed upon his/her death.
• Because a Will is regarded as a legally binding document, it needs to be drafted in the correct manner.
• The Will must be signed by the testator in the presence of two ‘qualifying’ witnesses (who also sign the document).
• Anyone over the age of 16, who is mentally capable, may make a Will. 

2.   WHAT ARE THE CONSEQUENCES OF NOT HAVING A VALID WILL?

• If a person dies without leaving a Will, the person dies Intestate.
• If this happens the Master of the High Court would determine who the closest blood relatives are and would then distribute the assets in terms of this.  
• This can cause a huge problem as your loved ones may not receive the funds you wanted them to have, as a distant relative (seen as your next of kin on your bloodline) may end up receiving assets you wanted to leave to your loved ones.
• Just to add: Anyone can draft your Will for you. You can even draft your own Will. However, it is wise to seek expert and professional advice when drafting your Will to ensure that your needs and wishes are correctly spelled out and to ensure your Will is valid. If your Will ends up being invalid, it could cause problems.
• Another area that is important is to make sure that you have made provision for enough assets to cover debts, death expenses, and to provide an income for your family. Should you not have enough cash/assets in your estate your family, may be left in trouble. 
• Also, should you not have enough liquid assets in your estate, the result could be that your family home may need to be sold in order to free up cash to cover death expenses and taxes, which is probably something you would never have chosen to happen.
• You can take care of your liquidity requirements by having sufficient life cover in place to provide for loved ones, and to cover debts and death expenses, in the event of death.

3.  HOW TO SET UP A VALID WILL?

• All Wills must be in writing. It can be written by hand, typed, or printed. The person making the Will must be at least 16 years old or older, and must be mentally capable of understanding what they are doing and what the consequences of their action are,  
• Your Will needs to clearly state who is to inherit funds from within your Estate. You can nominate who you want your heirs to be and what they are to receive upon your death.
• The name of your nominated Executor should be included in your Will. The Will may also state that the Executor is exempt from providing security,
• Both the Testator as well as two witnesses must sign the Will. Each page, and any alteration also needs to be initialled by the Testator and two witnesses.
• The place and date of signing must be written at the end of the document.                                                                
• Witnesses should be people who have no interest in the Will. They should not be family members or stand to gain from the Will or the spouse of an heir, as they may be disqualified from receiving any benefit from that Will. Witnesses’ signatures merely attest to the fact that the Testator signed the Will in their presence. They do not have to read or know the content of the document. Witnesses must be at least 14 years old and must be competent enough to give evidence in a court of law.

4.  WHAT DO YOU NEED TO CONSIDER INCLUDING IN YOUR WILL?

• In your Will you should include all the beneficiaries you want to benefit from your Estate, and you should stipulate the inheritance each is to receive.
• In your Will, you can request that a Trust be set up on death to protect your children (i.e., if they are minors or if you believe they would be unable to handle their inheritance, you could request that the inheritance be held in Trust up to a predetermined age, e.g., Age 21 or 25)
• You could stipulate that, during this period, funds could be released to cover studies and living expenses, etc.
• In your Will you can also nominate a guardian to look after children who are minors. Funds could be held in Trust with an income being released to cover expenses, whilst still protecting the assets in the Trust until your children are at a responsible age to handle their inheritance.
• A Will can be used to protect an inheritance from the consequence of a future marriage partnership or union.
• In your Will, you can also make provision for donating your body to an Organ Donor organisation.
• You can also specify whether you wish to be buried or cremated
• It is also a good idea to nominate alternate heirs should your nominated heir predecease you. If you do not nominate alternate heirs, your intestate heirs (nearest blood relatives) may inherit your estate in the event of your heirs predeceasing you.
• In your Will, you should include full names and identity numbers of all persons included in the Will.
• You should also state that your new Will replaces any previous Wills drawn up by the Testator.
• An important factor to consider in your Will, is that if you leave your assets to your spouse there will be no death tax payable until death of the last dying spouse. 
• Furthermore, if you nominate beneficiaries on your assurance policies, you can save on Executive Fees.

• Keep the wording as plain and simple as possible.
• Be specific; don’t use vague terms.
• Notify your loved ones about where your Will is kept so that it is easily located upon your death. 
• Your Will should be reviewed periodically. It is a ‘living document’ and should be changed as your circumstances change.

In a nutshell,

• Your Will is going to speak for you when you can’t speak for yourself… when you are dead. So, it is vitally important that the message it conveys is specific, clear, and easily understood. 

• Remember, your appointed Executor is going to have to implement your wishes based on the information you have inserted in this document. If they have queries, they can’t phone you and ask what you meant – so be clear.   

• It is critical that you speak to an Attorney who specialises in Estate Planning or a qualified Financial Advisor who will be able to advise you on how to structure your Will to ensure cost and tax efficiency. They will also be able to highlight potential shortfalls, do an estate duty analysis, and advise on how much life cover is needed to provide protection on death.

• Make sure that you make provision for potential Estate Duty and winding up of your Will expenses. Estate duty is a death tax (of 20%) that is levied on all estates that exceed R3 500 000. In other words, if your estate was worth R5 500 000, you would be liable for tax on R2 million at 20% (R400 000) and executors’ fees at 3.99% (R220 000), plus other costs.

One of the first clauses you include in the Will document is to revoke all previous Wills, i.e., that this Will replaces or supersedes all previous Wills made by you. This is to avoid conflict regarding the validity of this new Will. 

Secondly, you need to nominate an Executor. The Executor is entitled to charge a fee (the fee is usually set at 3.5% plus VAT of the gross value of the Estate).

Speaking of fees, there are other ‘final expenses’ that one should make provision for, and these include;

• Bank Charges, Government Gazette Fees, Advertising fees, Executors Fees, Masters Fees, Funeral Expenses, potential transfer duty, property valuation fees, death taxes, and Estate duty taxes 

Thirdly, list all your wishes and how you want your assets to be distributed upon your death, detailing the full particulars of the beneficiary and what it is that they should be receiving (ie 25% of your estate,). If you have Special Bequests (ie I leave my car CA 0000 red Ferrari, to my daughter Mary Smith, etc).

In your Will, you can also advise what should become of your body (i.e., it is to be cremated, or organs donated to the Organ Donor Foundation, etc.).

4.  ARE YOUR LOVED ONES PROTECTED?

• In the event of your death (or in the event of a sickness or disability), will your loved ones be provided for financially?
• Often people have their Will in place but forget to cover debts and ensure that there is adequate life cover or assets to cover the financial needs of a family?
• In the event of death or disability, you should have sufficient life and disability cover to be able to settle debts (eg. home loans and overdrafts, etc.) If you do not, you can leave your family financially bankrupt.
• In the event of your death or disability, will your family have enough income to cover living expenses? If not, I would suggest that you ensure that you have enough life and disability cover in place to protect your loved ones. 
• I have seen many families left in financial ruin because they did not have adequate life and disability coverage in place. Risk cover is a vital area of Estate Planning that is often neglected when reviewing one’s Will. If tragedy struck would your family be left financial destitute? If so, I would recommend that you sit down with a financial advisor.
• A Financial Advisor will be able to do a Financial Planning Analysis for you. This involves looking at your current needs and objectives (taking debts, contingency, and income needs into account) and looking at your current provision. If there is a shortfall, a Financial Advisor will be able to highlight shortfalls and provide a suitable solution to ensure sufficient protection is in place. 

Consider life cover and disability cover to cover your debts and to provide a contingency fund in the event of death or disability. Also, make sure that you have enough coverage to provide suitable income to cover your loved one’s monthly living expenses.

Make sure that you have enough life and disability cover in place to ensure that your debts are covered and that your family is not left destitute? 

“Anyone who does not provide for their relatives, and especially for their own household, has denied the faith and is worse than an unbeliever.” (1 Timothy 5:8)

Jesus said… “Anyone who listens to my teaching and follows it is wise, like a person who builds a house on solid rock. Though the rain comes in torrents and the floodwaters rise and the winds beat against that house, it won’t collapse because it is built on bedrock. But anyone who hears my teaching and doesn’t obey it is foolish, like a person who builds a house on sand. When the rains and floods come and the winds beat against that house, it will collapse with a mighty crash.” (Matthew 7:24-27)

Be wise. Build your house on the rock. Put measures in place to protect your family and yourself in the event of you having to face a storm in life. Make sure you have insurance in place for protection. 

This scripture above is actually relating to the day of judgement. Please make sure that you not only provide protection for you and your family’s financial future, but also make sure that your eternity is secure.

• Make sure you have enough assets going to the estate to settle debts, provide for your loved ones, and make provisions for death taxes and expenses. Alternatively, you should ensure that you have adequate life cover in place to take care of these needs and expenses. 

An up-to-date Will, with sufficient life cover in place (or sufficient investments), is the only means to ensure that your estate is distributed according to your wishes. A Will is a necessity for all persons – especially those with children.

Consider the following…

• Have you planned for your family and loved one’s future in the event of your death? (This includes ensuring that you have enough capital to cover winding-up of estate costs, death taxes, capital to settle debts, and funds available to provide for your family.)
• Do you have adequate assets or life cover in place to take care of your needs and expenses on death?
• Who is going to look after your children if you die when they’re still young? Have you nominated a guardian?

In a nutshell,

• Keep things simple – make sure your will is clear and concise.
• Review your Will regularly.
• Make sure your loved ones know where your Will is kept and who the Executor is.
• Speak to a qualified Financial Planner or Attorney to help you draft your Will. An Estate Planning & Liquidity Analysis will highlight potential shortfalls and ensure you have enough protection in place to protect your loved ones.

Consider these scriptures…

“A good man leaves an inheritance for his children’s children, but a sinner’s wealth is stored up for the righteous.” (Proverbs 13:22)

Finally, life is temporary and fragile. Yes, it is important to plan and have a valid Will in place. But more importantly, do you know where you will spend eternity? 

If your eternity is a matter of chance, I ask you to seriously look at your relationship with God.

“How do you know what your life will be like tomorrow? Your life is like the morning fog—it’s here a little while, then it’s gone.” (James 4:14)

What Does God Have to Say?

The world is currently a scary place, but you can choose to surrender your life and fears to God.

Psalm 46 1-2… “God is our refuge and strength, an ever-present help in trouble. Therefore, we will not fear…”

Yes, we will face storms in life. Jesus told us that we would face tough times.

John 16:33a… “In this world you will have trouble.”

But Jesus didn’t stop there. He went on and said…

John 16:33b… “But take heart! I have overcome the world.”

I want to encourage you not to put your hope in money. Rather, put your hope in God.

Hebrews 13:5-6… “Keep your lives free from the love of money and be content with what you have, because God has said, “Never will I leave you; never will I forsake you.” So we say with confidence, “The Lord is my helper; I will not be afraid. What can mere mortals do to me?”

If Jesus is your Lord and Savior, you can rest in Him, knowing He is your helper and will never abandon you. Isn’t it amazing that God wants to walk the journey with you? 

God saw that man was separated from Him, so He even sent His Son, Jesus, to pay the price for you and me on the cross so that we could come into a relationship with Him. You can start a walk with God, not because of what you do, but because of what Jesus did. This relationship ensures that you and I do not need to face life alone and continues into eternity.

Do you know Jesus as your Savior? If not, invite Him into your heart.    

John 1:12… “Yet to all who did receive him, to those who believed in his name, he gave the right to become children of God.”

Don’t live in fear and dread. Life consists of more than money and material things. Put your life in the hands of God. Invite Jesus to be your Savior. Surrender your life to God. Give Him your burdens and concerns. You can take refuge in Him. 

Let’s Pray

Father, while the world is in turmoil, I thank you that you are still on the Throne. I ask you to be my Savior. Thank you for the price you paid on the cross for me so that I can be set free and live under the shelter of your protection, not only during my temporary life on earth but right into eternity. Thank you for the joy and peace I can have in you. Please protect me and my family from the storms and plagues that are hitting the world. Today I put my life in your hands and thank you that you are My God, My place of safety, My protector, and My provider. Lord, we pray for peace and healing in our fragile world, and we ask that you bring revival and breakthrough in my life, in my family, and throughout the world. I ask this in Jesus’ name, Amen.

If you have prayed this prayer, please let us know. We would love to pray for you and send you an incredible eBook to help you on your journey with God.