A valid will is generally beneficial, but it has limits and cannot deal with every aspect of planning.

A will operates on death. It does not manage your affairs while you are alive if you lose mental capacity. An ordinary power of attorney also generally cannot continue once the person granting it loses the legal capacity to act, so incapacity planning needs to be considered separately. Advance healthcare directives and appropriate lifetime structures deal with different issues from a will.

A will also does not remove the need for deceased estate administration. Assets that form part of the estate remain subject to the Administration of Estates process, including reporting to the Master, creditor procedures and the Liquidation and Distribution Account. Property genuinely owned by an inter vivos trust does not ordinarily form part of the founder’s deceased estate, although a loan account or other claim held by the deceased against the trust may still be an estate asset.

A will does not control every benefit connected with death. Many retirement fund death benefits are governed by section 37C of the Pension Funds Act. Where section 37C applies, the fund’s board is generally not bound by the will or beneficiary nomination and must allocate the benefit under the statute. Life policy proceeds are different: whether they fall into the estate or are paid directly to a nominated beneficiary depends on the policy ownership, beneficiary nomination and policy terms.

A will is therefore one part of a broader estate plan and should be coordinated with trusts, beneficiary nominations, insurance, retirement benefits, matrimonial property arrangements and estate liquidity.

See also: What happens when a person dies without a will in South Africa? | Trusts FAQ: “Is a family trust a must?”

Disclaimer: The information provided here is intended as general guidance only and does not constitute legal, tax, or financial advice. Every situation is unique, and legislation is subject to change. We invite you to reach out to our team at Wealth and Legacy Group for guidance tailored to your specific circumstances.