Risks of DIY Wills in South Africa: Why Expert Help Matters

Drawing up your own will might seem like a simple way to save time and money. But experts warn it can lead to serious pitfalls. These include creating a document that is legally valid yet not executable, leaving loved ones at risk. Individuals drafting DIY wills and their families are affected. Under South African law, this matters now because it could trigger unintended heirs, tax burdens, and vulnerable children without proper care.

Sharon Hamman, senior legal adviser at Momentum, explains a key difference. A valid will meets basic legal form requirements. But an executable will goes further.

It ensures the executor can carry out all instructions. This means having enough funds left after paying debts, administration costs, and bequests.

Hamman notes that DIY templates often guide users to validity. Yet they risk creating a will that cannot be fully actioned.

South African law sets rules for intestate succession. This applies if no valid will exists. Assets then divide by a fixed formula.

That formula might send property to distant relatives. It could skip the people you wanted to benefit, Hamman says.

Death also triggers taxes. Capital Gains Tax may apply. Estate duty ranges from 20% to 25% of the net estate value.

Executors might sell assets to cover these. Or beneficiaries could pay out of pocket.

Parents of minors face extra risks. A DIY will might skip naming a guardian. It could also lack funds for the child’s care.

Trusts offer protection in South Africa. They secure wealth for generations. But they must be set up right, Hamman adds.

These issues create real problems for families.

Here are key risks of DIY wills:

• Unintended heirs get assets instead of chosen loved ones.
• Tax bills force sales of homes or valuables.
• Minor children lack guardians or financial support.
• Faulty trusts fail to protect long-term wealth.
• Overall estate shrinks due to poor planning.

Expert help avoids these traps. Hamman urges seeing a financial adviser. This creates a valid and executable will.

Tie it into your full financial plan. Trusts work best when professionals handle them. They provide lasting security.

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.

Hamman offers more details in her advice. Listen to the audio or read her full column for guidance.