Every competent person of 16 years and older that owns assets and is mentally able to understand the results of his or her actions, should have a will. Why? If a person dies without a will, it could lead to severe administrative, tax and legal problems and possibly also lead to financial losses.

A will should comply with certain legal requirements to be valid. In your will, you determine how your assets should be divided, and nominate an executor and trustee to take care of the division of the estate's assets and to handle the administration of any trust assets.

You have the right to name heirs as you wish in your will. If you don't, your assets will be divided according to the Intestate Succession Act, Nr 81 of 1987, after your death – which could mean that persons that you would have preferred not to inherit from you, could inherit.

Your will therefore determines the future of everything that you've built up through the years – and your heirs can be directly disadvantaged if you don't plan correctly. Estate duty, income tax, VAT and capital gains tax can take a big chunk out of your estate if your planning is wrong. It thus goes without saying that you should get the advice of a specialist or adviser for the drafting of your will.

The purpose of estate planning is to ensure that your heirs may reap, after your death, the benefits of your life-long toils.

When a person dies, all the assets and liabilities of the deceased, as at the date of death, form part of the estate. If this estate is not planned early and thoroughly, it may unnecessarily expose the estate to estate tax.

You should at all times try to minimise the potential estate taxes through the proper planning of your will, and also ensure that there is sufficient cash to cover this tax. If not, it may lead to a forced sale of assets.

The help of a professional estate planner is essential. You may contact your De Villiers adviser or broker in this regard.

De Villiers Brokers has a nationwide network of advisers – experts, lawyers, auditors or intermediaries holding the FPI qualification. We recommend that you make use of our services for complex estates.