Once again I have picked up some interesting and welcome information from an article in The Independent on Saturday. It was written by Hester van der Merwe of Ultima Financial Planners and Wealth Management and appeared on Saturday 21 November 2020.
Although this information affects couples who live together without getting married and die intestate, the best way is to have a will to prevent problems of inheritance. A High Court decision declared the Intestate Succession Act unconstitutional as it did not recognise long term heterosexual relationships without marriage. It provided for married partners and same-gender life partners because they had endured great difficulties in getting married for many years. This new ruling means that the same inheritance rules should apply to all permanent relationships. Similarly, the rules for the Maintenance of Surviving Spouses was challenged and is to be changed. These changes are important as there may be may reasons why a heterosexual couple chooses not to marry.
The High Court judgement still needs to be approved by the Constitional Court but this should be no more than a formality. This judgement takes South Africa another step forward in the creation of a fair society.
Just because these rules are to be changed does not in any way make having a will any less important. It is the most secure way of ensuring that your assets will be divided amongst those whom you choose and is not dependent on court rulings. Having a will means being safe and not sorry and it will prevent challenges by any persons assuming that they have a stake in the estate. South African Law is ahead of laws in many other countries in that you can detail exactly how your estate is to be divided on your death.
MAIN REASONS TO HAVE A WILL
- You may select your Executor and to determine the fee.
- You can set up a Testmentary Trust and name the Trustees for minor children. The alternative is that their inheritance goes to the state’s Guardian Fund which releases the funds when they turn 18.
- You can make specific bequests to institutions and/or individuals which will retain your legacy of support.
- With a properly prepared and witnessed will tax benefits could apply.