Why an Estate Plan Matters More Than You Think
Estate planning is often treated as something to sort out "eventually" — usually after other financial priorities are settled. In reality, it is the plan that determines whether everything else you have built is transferred smoothly, or tied up for months while your family waits.
Wills and Intestate Succession
A valid, up-to-date will is the foundation of any estate plan. Without one, your estate is distributed according to the Intestate Succession Act — a fixed formula that may bear little resemblance to what you would have chosen, and that does not account for step-children, unmarried partners, or specific bequests.
A will should be reviewed after every major life event — marriage, divorce, the birth of a child, or a significant change in assets.
Estate Duty and Executor's Fees
Two costs are often underestimated when families plan for the future:
- Estate duty, currently levied on dutiable estates above the abatement threshold
- Executor's fees, which can run up to 3.5% (plus VAT) of the gross value of the estate
Both can be planned around — through the correct use of trusts, structured bequests, and by nominating an executor whose fees are negotiated in advance rather than left to the statutory maximum.
Trusts and Fiduciary Services
A trust can be a powerful tool for protecting assets, providing for minor children or beneficiaries who are not ready to manage a lump sum, and keeping certain assets outside your estate for duty purposes.
Fiduciary services — the ongoing, professional administration of trusts, deceased estates, and powers of attorney — ensure these structures are managed correctly and in the interests of the beneficiaries, not left to chance or informal arrangements between family members.
Liquidity: The Overlooked Estate Risk
Even a well-structured estate can stall if there is no cash available to cover duty, executor's fees, and administration costs before assets can be distributed or transferred. Liquidity planning — typically through life cover written in trust for the estate — ensures your family is not forced to sell property or investments at the wrong time simply to settle the bill.
An estate plan is not about dying — it is about making sure the people you leave behind are not left to sort out the consequences of not planning.
If it has been a while since your will was reviewed, or you are unsure whether your estate has enough liquidity to settle its own costs, a short conversation can identify the gaps before they become your family's problem.
Want to discuss how this applies to your situation?
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