How drawing up your own will could disadvantage your loved ones

The importance of having a will to ensure that your wishes are carried out upon your death, cannot be overemphasized.

But is it wise to DIY this important document as opposed to getting expert advice?

While it's understandable that many people want to find simple solutions to save time and money, in the case of a legal document like this there are pitfalls you might not be aware of that could have serious consequences.

One of the first things to understand is that there is a difference between a will which is valid, and one which is actually executable, says Sharon Hamman, senior legal adviser at Momentum.

The valid will versus the executable will:

While most DIY templates and apps will guide the user in the right direction, one of the biggest dangers of going on this will drafting journey on your own is to end up with a perfectly valid document that is not executable, cautions Hamman.

Executable means the executor can fulfil all the instructions and wishes contained in the document successfully, having sufficient funds to settle debt, administration costs and bequests. “A will is an integral part of your financial plan. By obtaining expert advice from a financial adviser, the end result will be a valid and executable will.”

Understanding intestate succession:

South African law has specific rules for intestate succession, that is what happens if someone dies without a valid will.

Without it, your estate will be divided according to a set formula, which may be vastly different to your own wishes, Hamman explains.

This means your assets could end up with relatives that you had no intention to inherit, rather than the loved ones you wanted to benefit.

Death and taxes:

As Hamman points out, death is a potential trigger for Capital Gains Tax and your worldwide estate may be subject to estate duty, ranging from 20% to 25% of the net estate value.

This is an important consideration when drafting an executable will: An unexpected Capital Gains Tax and estate duty liability can result in the executor having to sell assets to pay the taxes or looking towards the beneficiaries to foot the bill.

Guardianship and minor children:

For parents of minors, appointing a guardian and making provisions for their care and maintenance is a critical aspect of estate planning.

"A DIY will might overlook these essential elements, leaving your children vulnerable”, Hamman warns. You want to ensure that it guarantees your children’s needs are met, both financially and emotionally.

The role of trusts:

Trusts are popular estate planning tools in South Africa, and this is another area where professional advice is usually needed.

“Trusts can provide long-term financial security for your beneficiaries and preserve wealth for future generations but need to be set up correctly.”

Scroll up to the audio player to listen to Hamman's detailed advice, and click here to read her column