21 Essential Estate Planning Questions

29 July 2024 21978

Estate Planning is not limited to the wealthy. Here are 21 questions you should ask yourself:

1. Do you have a valid will in place? When was the last time you ensured that the original will is on file? (The Master of the High Court does NOT accept copies of wills).
2. Who have you nominated as the executor of your estate? Does this person understand your wishes? Do you trust your nominated executor? Does he or she have the knowledge of the estate administration process?
3. Have you considered potential challenges and disputes that could arise among your heirs, and how can you mitigate them?
4. Do you have a clear plan in place for distributing specific assets or sentimental items to specific family members?
5. What is your plan for addressing outstanding debts, liabilities, or mortgages when your estate is administered?
6. Are you a business owner? Have you thought about the possibilities of a business succession plan to ensure the continuity of your business after your passing?
7. Do you have a “life file” checklist? Do you know where all your important documents are? It is not just about your will; it is about your entire estate. Do you have all your important documents in a safe and accessible location to avoid delays in winding up your estate?
8. Do your loved ones know where to find your will and other critical documents in case of an emergency?
9. Do you have a living will? Do you know what a living will is?
10. Have you considered the impact of taxes on your estate? Estate duty is calculated at 20% for everything more than R3.5 million. Tax liabilities could reduce the value of your estate.
11. Will you be leaving your heirs with financial burdens? If so, what is your plan to alleviate them?
12. Did you know a specific inheritance has preference over the heirs of the balance of your estate?
13. Do your life insurance policies have nominated beneficiaries?
14. Do you have firearms? Who will inherit them? Are you sure the heir of your firearms would want to inherit them? There are legislations in place to keep firearms in a safe place. What happens when you pass on?
15. Did you know that a child under 18 may not receive his or her cash inheritance? If you have not made provisions, the money must be paid over to the Guardian’s Fund, a government-controlled entity. Have you made provision for a testamentary trust in your will?
16. Have you made provisions to maintain your spouse and children financially during the estate administration process?
17. Do you have a plan in place for your spouse to have access to money from the time of your death until the life insurance policies pay out?
18. Do you have a joint bank account? Have you ever considered what will happen if the bank freezes the account after death?
19. Will you have enough liquidity in your estate to ensure that the administration of your estate can be attended to and finalized without causing your family members further stress and hardship?
20. Did you know that all debts have to be settled before your heirs can receive their inheritance? Have you made provisions for such a situation?
21. Part of administering a deceased estate is to get a tax clearance from SARS. Is your tax up to date?