Estate planning helps ensure that your loved ones are cared for when you are no longer around.

Secure your legacy through estate planning in September

The cornerstone of estate planning is a will — the document that ensures an individual’s assets will be distributed according to his or her wishes in the event of his or her death. Without a will, the state steps in and those assets are distributed according to the Intestate Succession Act — a rigid formula that may not reflect individual wishes or unique family dynamics. The consequences can be financially and emotionally devastating for those left behind.

Despite its importance, statistics from the Master of the High Court show that less than 15% of South Africans make a will after their death.

Estate planning is about more than just distributing assets. It’s about securing the future of those you love and ensuring that your legacy is managed according to your wishes. National Wills Month, celebrated each September, shines a light on this often overlooked aspect of financial planning.

While the campaign encourages people to create or update their wills, true estate planning goes beyond just preparing legal documents. It also involves a comprehensive assessment of finances, long-term goals and the needs of the survivors.

A common misconception is that estate planning is only necessary for the elderly or wealthy. However, experts agree that it is a crucial process for everyone, regardless of age, health or financial status, and that anyone with assets — a home, a car or even a modest bank account — should consider an estate plan.

Another common misconception is that once a will is created, the work is done. In reality, estate planning is an ongoing process. As individuals and their circumstances change, so should their estate plan. Marriage, the birth of children, divorce, or major financial shifts can dramatically impact the distribution of a person’s assets, and regular reviews ensure that existing plans remain in line with current wishes and intentions.

The first step in estate planning is recognizing its importance and making the decision to begin. National Wills Month is the perfect opportunity to take that first step. It’s also a great opportunity to review and update existing documents. Many attorneys and nonprofits offer free or deeply discounted will drafting services during the month of September, making estate planning accessible to everyone.

The Hidden Benefits of Estate Planning

Without a will and a well-structured estate plan, the estate settlement process can be long, costly, and stressful for those left behind. The benefits of estate planning extend far beyond these basic principles and offer a range of hidden benefits that can have a significant impact on individuals and their loved ones.

Preventing conflicts

Without a clear and legally binding will, disagreements can arise between family members, leading to long-term rifts and costly legal battles. Estate planning helps prevent misunderstandings and keeps families united during difficult times.

Ensure business continuity

A well-structured estate plan can ensure smooth succession, prevent a business from collapsing in the event of death or disability, and protect the livelihoods of employees. It can also prevent potential challenges such as partner disputes, loss of value, or even the closure of a business.

Care for minors

Guardianship designations determine who will care for young children if both parents die. Without a designated guardian, the court will make this decision. Guardianship instructions in estate planning allow parents to appoint trusted guardians and set up trusts to manage the children’s estate until they reach adulthood.

Protection through flexibility

Estate planning provides the flexibility to structure the distribution of assets based on values ​​and priorities. For example, a larger portion can be left to a family member who was the primary caregiver or a loved one who needs more financial support. It can also help protect vulnerable beneficiaries, such as minors and those with special needs or who are financially inexperienced.

Maintain Privacy

If there is no will, the estate goes through a public court process that becomes a matter of public record. Good estate planning bypasses this process, preserving the privacy of those left behind and protecting beneficiaries from unwanted attention or potential fraud.

Peace of mind

The most valuable benefit of estate planning is the peace of mind it provides. Knowing that your affairs are in order, loved ones are protected, and your wishes are being honored can provide a profound sense of comfort. This gift extends to those left behind, who are spared the stress and uncertainty of navigating an estate without guidance amid grief and loss.

Managing your digital legacy

An individual’s online presence is a crucial part of their identity in this digital age. For this reason, it is increasingly important to consider not only traditional assets, but also one’s digital footprint when planning for an estate. Digital legacies include social media profiles, online bank accounts, and cryptocurrencies. Without proper planning, these can become inaccessible or misused after death, causing stress and financial hardship for those left behind.

Digital financial assets pose specific challenges. For example, cryptocurrencies can be lost without known wallet passwords after death. It is also important to ensure access to online banking, insurance and tax information.

Platforms like Facebook offer options to posthumously delete or memorialize accounts. A memorial profile can serve as a place for family and friends to gather and share memories after someone has passed. Both options require the account holder to designate a legacy contact through Facebook while they are still alive. It is important to have candid conversations with family and loved ones about someone’s online presence, as it can have a significant impact on their emotional well-being and grieving process.

What can we do about this?

In addition to a traditional executor, a digital executor can also be appointed to manage assets such as online accounts, digital files and other virtual properties after death.

This may include closing, memorializing, or maintaining social media profiles, handling online banking, investments, and cryptocurrencies, and securing, organizing, or distributing digital files such as photos, documents, or other media stored in cloud services. A digital executor also assists with password management, accessing online accounts via abandoned passwords, often stored in a password manager.

Appointing a digital executor ensures that a person’s digital life is managed properly and that assets are not lost or mishandled after death. Planning for a digital legacy can protect loved ones and ensure that wishes are honored. This National Wills Month (September), take the time to consult with professionals to ensure that your digital assets are included in your estate plan.