The beginning of a new tax year often provides a natural moment to pause and review important financial and family matters, like reviewing your Will. In South Africa, the individual tax year runs from 1 March to the end of February, which makes this period a practical checkpoint to reassess planning decisions.

During busy seasons of life, however, important matters such as estate planning are often postponed. Work responsibilities, family commitments, and everyday pressures can easily push long-term planning to the background.

Yet one document remains critically important: your Will.

A Will protects your wishes and your family

A valid Will ensures that your assets are distributed according to your wishes and that the future management of your estate takes place in an orderly and structured way.

Your Will also allows you to address important considerations such as:

• who should administer your estate as executor
• who should act as guardians for minor children
• how assets should be distributed among beneficiaries

Without a valid Will in place, your estate will be administered according to the Intestate Succession Act. This legislation provides a predetermined formula for the distribution of assets, which may differ significantly from what you intended for your family.

When a Will becomes outdated

Many people believe that once a Will has been signed, the matter is permanently resolved. In reality, a Will should be viewed as a living document that may need to evolve as circumstances change, which is why reviewing your Will is a necessity.

Problems often arise when a Will no longer reflects a person’s current family structure or financial position. In some cases, an outdated Will can even create unintended consequences during estate administration.

Another common issue occurs when the original signed Will cannot be located, which can complicate the reporting of the estate to the Master of the High Court.

Ensuring that your Will is both valid and accessible is therefore just as important as drafting it correctly.

Estate costs and taxes: why liquidity matters

Estate planning also involves understanding the financial realities that arise when an estate is administered.

Several costs may affect an estate, including:

• Estate Duty, where applicable
• Capital Gains Tax implications, as death can trigger a “deemed disposal” of assets for CGT purposes (subject to certain exclusions and rollovers)
• Executor and administration costs involved in winding up the estate

A common challenge occurs when an estate holds significant assets such as property or business interests but has limited available cash. This lack of liquidity can place pressure on surviving family members and may lead to rushed or undesirable financial decisions.

Properly reviewing your Will and proper estate planning helps ensure that potential costs and liquidity requirements are considered in advance.

When should a Will be reviewed?

Estate planning professionals generally recommend reviewing your Will on a regular basis, often annually or at least every few years.

A review should also be considered whenever a significant life event occurs, such as:

• Marriage, divorce, or separation
• The birth of a child or changes in dependants
• The acquisition or sale of significant assets
• Changes to executor or guardian preferences
• Uncertainty about where the original Will is stored

These events may affect how assets should be distributed or how responsibilities should be assigned, and may necessitate reviewing your Will.

Where to from here

Reviewing your Will periodically ensures that it continues to reflect your wishes and that your estate can be administered efficiently when the time comes.

If you would like assistance reviewing your current Will, assessing potential estate costs, or ensuring that your documentation is properly stored and accessible, our team at AIM would be happy to assist.

Taking the time to review your estate planning today can help protect your family and provide clarity when it matters most.

Disclaimer

The information contained in this article is provided for general informational purposes only and does not constitute accounting, tax, audit, legal, financial, or other professional advice. While every effort has been made to ensure the accuracy of the information at the time of publication, laws, regulations, and interpretations may change, and the application of information may vary depending on individual circumstances.Readers should not act upon the information contained in this article without seeking appropriate professional advice specific to their situation. AIM accepts no responsibility for any loss or damage arising from reliance on information contained herein.