Wills and Estates: Why You Need One Even if You’re Young
Think you're too young for a will? Nolan explains Wills and Estates, the dangers of dying intestate, and how to protect your family from the government.
There is a conversation nobody wants to have at a Saturday braai. It usually starts with, “So, if you get hit by a bus tomorrow, who gets your car?”
It’s morbid. It kills the vibe. But in South Africa, where road accidents are a daily reality and life is unpredictable, it is arguably the most important conversation you can have.
Most young people I meet think wills and estates planning is for “old people” with millions in the bank. They think because they only own a VW Polo and a laptop, they don’t need a will. This is a dangerous myth.
I’m Nolan, and I’m here to tell you that if you have anything of value—or more importantly, if you have children—you need a will. Without one, you are leaving your family with a legal nightmare that can take years to unwind.
Today, we are going to strip away the “legalese” and look at why drafting a will is the ultimate act of “adulting.”
The “Intestate” Nightmare: When the Government Decides
If you die without a valid will, you die “intestate.” This means the Intestate Succession Act kicks in. Essentially, the government has a default formula for who gets your stuff.
- The Scenario: You are 30. You are married (Community of Property) and have no kids.
- The Result: Your spouse gets everything. Simple, right?
- The Twist: What if you are separated but not divorced? What if you have a life partner but aren’t legally married? The law does not recognize “girlfriends” or “boyfriends” in the same way. Your partner could be left with nothing, and your assets could go to your estranged parents or siblings instead.
Furthermore, the Master of the High Court has to appoint an Executor. This process is slow. While the bureaucracy grinds on, your bank accounts are frozen. Your partner cannot pay the rent or buy groceries using your money. I have seen families destitute for months because of this freeze.
Reason 1: Protecting Your Children (The Guardian’s Fund)
This is the single biggest reason to get a will. If you have minor children (under 18) and both parents pass away, who looks after them?
If you don’t name a Legal Guardian in your will, the state decides. The court will try to place them with family, but do you want the court deciding between your responsible sister and your reckless brother?
The Money Trap: Even worse, if you leave money to a minor (e.g., a life insurance payout) and there is no “Testamentary Trust” set up in a will, that money goes to the Guardian’s Fund.
- This is a government-administered fund.
- It is notorious for bureaucracy.
- Your children’s guardians will have to beg the state for money to pay for school shoes or doctors.
By drafting a will, you create a Testamentary Trust. The money goes into a private trust managed by people you choose, specifically for your kids’ benefit.
Reason 2: The Executor Fees (Don’t Get Robbed)
When you die, someone has to wind up your estate (pay debts, close accounts, transfer the house). This person is the Executor.
By law, an Executor can charge up to 3.5% + VAT of your gross assets.
- Example: You own a house worth R2 million and a car worth R200,000.
- Gross Assets: R2.2 million.
- Fee: ~R88,550.
If you don’t have a will, the court appoints an executor (often an attorney) who will charge the full 3.5%. Nolan’s Tip: In your will, you can negotiate this fee. You can appoint a family member as “Executor” (for free) and have them hire a professional to help for a reduced fee (e.g., 1.5% or 2%).
What Actually Goes Into a Will?
It doesn’t have to be 50 pages long. A simple, valid will needs:
- Revocation: “I revoke all previous wills.” (This cancels the old one you wrote on a napkin).
- Nomination of Executor: Who does the paperwork?
- Nomination of Heirs: Who gets the car? Who gets the house? Who gets the sentimental watch?
- Guardianship: Who takes the kids?
- The Trust: “All assets left to minors must be held in trust…”
The “Living Will”: Not the Same Thing!
People confuse these two.
- Last Will and Testament: Deals with your stuff after you die.
- Living Will: Deals with your body while you are alive.
A Living Will is a letter to your doctor stating that if you are in a permanent vegetative state (brain dead) with no hope of recovery, you do not want to be kept alive on machines. It saves your family the heartbreak of making that decision.
Pension Funds: The Exception to the Rule
This is a critical concept in mastering personal finance in SA. Your Pension/Provident Fund/RA does NOT fall under your will.
Section 37C of the Pension Funds Act says the Trustees of the Fund decide who gets the money. They must find your “dependents.”
- If you leave your pension to your brother in your will, but you have a secret child or a dependent wife, the Trustees will ignore your will and give the money to the wife/child.
- Action: Always update your “Beneficiary Nomination Form” with your HR department. This guides the Trustees, even if it’s not legally binding.
How to Draft a Will (DIY vs. Pro)
1. The DIY Route (Stationery Store)
You can buy a template at CNA or download one.
- Risk: High. If you sign it incorrectly (e.g., your beneficiary signs as a witness), the will is invalid. I don’t recommend this for anyone with assets over R50,000.
2. The Bank
FNB, Standard Bank, Absa all offer free will drafting.
- Catch: They usually appoint themselves as the Executor at the full 3.5% fee. It’s free now, but expensive for your heirs later.
3. The Specialist (Lawyer / Trust Company)
Companies like Capital Legacy or private attorneys specialize in this.
- Benefit: They often sell you an “insurance policy” that covers the legal fees when you die, so your estate doesn’t pay a cent. This is often the smartest “value for money” move for young families.
The Golden Rule of Signing (The “Wet Ink” Rule)
South African law is old-school. For a will to be valid:
- It must be in writing (printed).
- You must sign every page.
- Two witnesses (who are not getting anything in the will) must sign every page in your presence.
- No Digital Signatures: You cannot sign a will with DocuSign or Adobe Sign. It must be wet ink on paper.
If you mess this up, the Master of the High Court will reject it, and you are back to Intestate misery.
Where to Keep It?
Don’t hide it so well that nobody finds it!
- Give a copy to your Executor.
- Keep the original in a fireproof folder or with your lawyer/bank.
- Tell your partner where it is.
The Ultimate Love Letter
Drafting a will isn’t about death; it’s about love. It’s the final way you protect the people you care about. It ensures that when you are gone, they aren’t fighting lawyers or the government—they are just grieving and healing.
You can get a basic will drafted for free during “National Wills Week” (usually in September), or for a few hundred Rands online. Do it this weekend. It’s the best hour of admin you will ever do.
FAQ: Wills and Estates
What happens to my debt when I die? Your debt does not die with you. Your estate must pay off your debts (credit cards, car loan) before any heirs get money. If your liabilities exceed your assets, your estate is insolvent, and your heirs get nothing (but they don’t inherit the debt unless they signed surety).
Can I disinherit my spouse? In South Africa, we have “Freedom of Testation.” You can leave your money to the SPCA if you want. However, a surviving spouse can claim “Maintenance” from the estate if they are left destitute.
How often should I update my will? Every time a “Life Event” happens: Marriage, Divorce, Birth of a child, Buying a house, or death of a beneficiary. At a minimum, read it every 3 years.
