COVID-19 AND THE UNCERTAINTIES OF LIFE: WHY YOU NEED AN ESTATE PLAN

The worldwide Covid-19 pandemic has led to uncertainties of life to everyone’s consideration. This is especially the situation due to this disease’s risks to elderly people who are at a high risk for severe complications.

The uncertainties created by this disease can weigh intensely on an individual’s relatives who have to manage their loved one’s estate, while additionally grieving for the loss of their relative.

The administration of a deceased estate is regulated by legislation and the estate is distributed in accordance with the rules of testate succession, intestate succession, or a combination of both rules.

What can an estate plan do for you?

  • It is essential to have the best possible plans set up to ensure that your wealth is structured ideally during your lifetime and after your death so that the right people benefit from your wealth.
  • An estate plan protects your assets for the benefit of both you during your lifetime and your beneficiaries after your death.
  • It prevents conflict among family members with different views on what to distribute to every member of the family.
  • Furthermore, an estate plan protects beneficiaries ensuring that they are cared for in a manner of which you approve.

What happens if you do not have an estate plan?

Should you not decide on who receives your property in the event of your passing, you will not have any control over what happens to it.

The deceased’s assets will be distributed according to the Intestate Succession Act, 81 of 1987.

How you can plan what happens to your estate:

  • Drawing up a will

A will is a document that acts as an instrument for distributing your assets after your passing;

  • Forming a trust

A trust is a legal document that grants trusteeship to an individual for the purpose of asset distribution; or

  • Appointing an attorney who will be authorised to act as your agent with your estate.

A Power of Attorney appoints an agent to manage your financial and legal affairs in the event of your incapacity.

With all the uncertainties caused by Covid-19, implementing an estate plan provides you and your family some level of relief.

Should you feel that you need advice to decide the best course of action for your estate, please contact our Laurika von Allemann on 041 506 3720 or Tembelani Vabaza on 041 506 3791.

Our services include the following:

  • Drafting of wills;
  • The administration of deceased estates;
  • Estate planning;
  • Administration of trusts; and
  • Liquidation and distribution of deceased estates.

LEAVE REPLY

Your email address will not be published. Required fields are marked *